Which rate does the RBI use as the benchmark for transmission of monetary policy?
Answer: B
The Repo Rate is the primary instrument used by RBI for monetary policy transmission. Banks' lending rates are benchmarked against this rate.
Q.22Easy
What does CASA stand for in banking terminology?
Answer: A
CASA represents Current Account and Savings Account deposits, which are low-cost funding sources for banks and crucial for profitability metrics.
Q.23Easy
Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), what is the overdraft limit for eligible beneficiaries?
Answer: B
PMJDY provides an overdraft facility of up to Rs. 10,000 to eligible account holders after 6 months of satisfactory operation of the account.
Q.24Medium
What is the minimum CRAR (Capital to Risk-Weighted Assets Ratio) requirement for scheduled commercial banks under Basel III as of 2024?
Answer: B
RBI mandates a minimum CRAR of 10.5% for scheduled commercial banks under Basel III framework, which includes capital buffers and conservation requirements.
Q.25Medium
Which of the following is NOT a credit rating agency recognized by SEBI in India?
Answer: D
Goldman Sachs is an investment bank, not a credit rating agency. CRISIL, ICRA, Care Ratings, and Brickwork Ratings are recognized credit rating agencies by SEBI.
Advertisement
Q.26Medium
What is the current limit for deposits under DICGC (Deposit Insurance and Credit Guarantee Corporation) coverage?
Answer: C
DICGC covers deposits up to Rs. 5 lakh per depositor per bank as per the latest amendment effective from 2024, increased from the previous Rs. 1 lakh.
Q.27Medium
Which committee's recommendations led to the implementation of Goods and Services Tax (GST) in India?
Answer: A
The Kelkar Committee (2003) recommended the implementation of GST in India, which was later formally implemented on July 1, 2017.
Q.28Medium
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.29Medium
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.30Hard
What is the Standing Liquidity Facility (SLF) introduced by RBI?
Answer: A
SLF is a standing facility introduced by RBI allowing scheduled banks to borrow funds against government securities, providing liquidity at a specified spread over the policy rate.
Q.31Hard
Under the RBI's regulatory framework, what is the maximum loan amount that comes under Priority Sector Lending (PSL)?
Answer: B
RBI guidelines specify Rs. 10 lakh limit for agriculture sector and Rs. 1 crore for micro-enterprises under Priority Sector Lending (as of 2024).
Q.32Medium
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.33Hard
Which of the following best describes 'Securitization' in banking?
Answer: A
Securitization is the process of converting illiquid assets (like loans) into tradable securities that are backed by the underlying cash flows of those assets.
Q.34Easy
What is the tenure for which RBI Governor is appointed?
Answer: C
The RBI Governor is appointed for a tenure of 4 years, after which reappointment is possible. The current Governor is Sanjay Malhotra (appointed December 2023).
Q.35Medium
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.36Medium
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.
Q.37Hard
Under Basel III, what is the minimum Common Equity Tier 1 (CET1) capital ratio required?
Answer: A
Basel III requires a minimum CET1 capital ratio of 4.5%, with an additional capital conservation buffer of 2.5%, bringing the total to 7%.
Q.38Easy
What is the primary objective of the Pradhan Mantri Mudra Yojana (PMMY)?
Answer: B
PMMY aims to provide collateral-free loans to micro and small enterprises for business purposes, with loans up to Rs. 10 lakh under the scheme.
Q.39Easy
As per the latest RBI guidelines (2024), what is the Statutory Liquidity Ratio (SLR) minimum requirement for Scheduled Commercial Banks?
Answer: B
As of 2024, the SLR minimum requirement is 18% of the bank's Net Demand and Time Liabilities (NDTL).
Q.40Easy
Which government scheme aims to provide social security coverage to unorganized workers?
Answer: A
PMJJBY provides life insurance coverage to unorganized workers at minimal premium, protecting their families.
