What is the mandated percentage of credit disbursement for Micro and Small Enterprises (MSE) under priority sector lending?
A 8% B 10% C 12% D 15%
RBI mandates that at least 12% of total priority sector lending should go to Micro and Small Enterprises.
In banking terminology, what does 'Amortization' refer to?
A The process of charging depreciation on assets B Paying off a debt gradually through scheduled payments C The rate of inflation in a fiscal year D The conversion of assets into cash
Amortization is the process of gradually paying off a loan through regular, scheduled installments over time.
Which of the following banks is NOT part of the RBI's core supervisory framework as a Systemically Important Bank (SIB)?
A ICICI Bank B HDFC Bank C Regional Rural Bank D Axis Bank
Regional Rural Banks are not classified as SIBs; only major private and public banks meeting size criteria are designated as SIBs.
What is the coverage amount under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as of 2024?
A ₹1 lakh per depositor per bank B ₹2 lakhs per depositor per bank C ₹5 lakhs per depositor per bank D ₹10 lakhs per depositor per bank
DICGC provides deposit insurance coverage of ₹5 lakhs per depositor per bank to ensure depositor security.
A bank's Loan-to-Deposit (LTD) ratio is 95%. What does this indicate?
A Strong liquidity position with conservative lending B Aggressive lending with potential liquidity stress C Excellent profitability D Poor asset quality
An LTD ratio of 95% indicates the bank is lending aggressively relative to deposits, which may strain liquidity.
Which regulatory framework governs cross-border rupee transactions in India?
A LIBOR Framework B Liberalized Remittance Scheme (LRS) C Foreign Exchange Management Act (FEMA) and RBI guidelines D International Monetary Fund (IMF) protocols
Cross-border rupee transactions are regulated under FEMA and specific RBI guidelines for internationalization of rupee.
Which of the following is the regulator of payment systems in India?
A Reserve Bank of India B Securities and Exchange Board of India C Insurance Regulatory and Development Authority D Ministry of Finance
The RBI is the central bank and primary regulator of payment systems in India, including NEFT, RTGS, and UPI.
What is the full form of KYC in banking?
A Know Your Client B Know Your Credit C Key Yield Certificate D Know Your Capital
KYC (Know Your Client) is a mandatory process for banks to verify customer identity and assess potential risks of illegal activities.
Which bank is the oldest bank in continuous operation in India?
A State Bank of India B Bank of India C Punjab National Bank D Allahabad Bank
Allahabad Bank, established in 1865, is the oldest bank in continuous operation in India and was the first bank founded by Indians.
As per RBI's latest norms (2024), what is the minimum capital adequacy ratio (CAR) for scheduled commercial banks?
A 8% B 9% C 10.5% D 11%
RBI prescribes a minimum CAR of 10.5% for scheduled commercial banks, which includes minimum Tier I capital of 7.5%.
Which of the following accurately describes a Statutory Liquidity Ratio (SLR)?
A Percentage of deposits banks must maintain as cash in hand B Percentage of deposits banks must maintain in liquid assets like government securities C Percentage of loans banks can issue against deposits D Percentage of capital reserves banks must hold
SLR is the percentage of deposits that banks must maintain in prescribed liquid assets such as government securities and treasury bills.
What is the current SLR requirement as per RBI guidelines (2024)?
A 15% B 18% C 20% D 25%
As per RBI's current guidelines, the Statutory Liquidity Ratio is fixed at 18% of net demand and time liabilities.
Which digital payment system is promoted by RBI and developed by NPCI?
A Google Pay B Unified Payments Interface (UPI) C Apple Pay D PhonePe
UPI is a real-time payment system developed by NPCI and promoted by RBI for seamless fund transfers.
What is the purpose of the Pradhan Mantri Mudra Yojana (PMMY)?
A To provide housing loans to poor families B To provide collateral-free loans to micro and small enterprises C To provide agricultural loans to farmers D To provide education loans to students
PMMY aims to promote micro and small enterprises by providing collateral-free loans up to 10 lakhs for business activities.
Which RBI scheme was introduced to address financial inclusion and reduce digital divide?
A Jan Dhan Yojana B Pradhan Mantri Jan Suraksha Yojana C Prime Minister Street Vendor's AtmaNirbhar Nidhi D Atal Pension Yojana
Pradhan Mantri Jan Dhan Yojana targets financial inclusion by opening basic bank accounts for all citizens, especially the unbanked.
In terms of banking operations, what does 'Clean Demand Draft' mean?
A A demand draft issued without any encumbrances B A demand draft not backed by merchandise or documents C A demand draft issued in clean currency notes D A demand draft with no crossing marks
A clean demand draft is one that is not drawn against any trade documents or merchandise, issued purely as credit.
What is the maximum tenure for a fixed deposit in Indian banks?
A 5 years B 10 years C 15 years D Unlimited
Indian banks can accept fixed deposits for any tenure as per the individual bank's policies, with no regulatory upper limit.
Which of the following is NOT a part of RBI's monetary policy transmission mechanism?
A Repo Rate B Reverse Repo Rate C Statutory Liquidity Ratio D Goods and Services Tax Rate
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.
What is the current repo rate as per RBI's latest monetary policy (2024)?
A 6.25% B 6.50% C 6.75% D 7.00%
As of 2024, RBI's repo rate is maintained at 6.5% as per the latest monetary policy decision by the Monetary Policy Committee.
Which of the following best describes 'Basel III' in banking?
A A payment system used by Indian banks B An international regulatory framework for bank capital adequacy and risk management C A loan classification system for non-performing assets D A digital banking security protocol
Basel III is an international regulatory framework developed by the Basel Committee on Banking Supervision for bank capital and risk management.
