What is the current mandatory Cash Reserve Ratio (CRR) set by RBI as per 2024-2025 guidelines?
Answer: C
As per RBI's latest monetary policy framework for 2024-2025, the CRR is maintained at 4.5% of Net Demand and Time Liabilities (NDTL).
Q.43Easy
Bank X's total deposits are ₹2,50,000 crores with advances of ₹1,87,500 crores. What is the bank's Loan-to-Deposit Ratio (LDR)?
Answer: C
LDR = (Advances / Total Deposits) × 100 = (1,87,2500,50,000) × 100 = 75%. A healthy LDR is typically between 70-85%.
Q.44Medium
Which banking regulation requires banks to maintain a minimum Statutory Liquidity Ratio (SLR)?
Answer: B
Section 24 of the Banking Regulation Act, 1949 mandates the maintenance of SLR, which is currently set at 18% of NDTL as per RBI guidelines.
Q.45Medium
A bank's Capital Adequacy Ratio (CAR) is 15.2%. Under Basel III, which tier of capital primarily contributes to this ratio?
Answer: C
CAR = (Tier 1 + Tier 2 + Tier 3 Capital) / Risk-Weighted Assets. Basel III requires minimum CAR of 10.5% (including capital conservation buffer) for Indian banks.
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Q.46Medium
If a bank's Cost-to-Income ratio is 42%, what does this indicate about its operational efficiency?
Answer: B
A Cost-to-Income ratio of 42% is considered healthy (lower is better). Ratios above 50% indicate inefficiency. This suggests the bank is controlling costs well relative to its income.
Q.47Medium
Which of the following is a feature of India's Insolvency and Bankruptcy Code (IBC), 2016?
Answer: B
The IBC, 2016 is a comprehensive legislation applicable to individuals and corporates. It mandates a resolution within 180 days (extendable to 270 days) through a structured process involving creditors, including banks.
Q.48Easy
A bank's Non-Performing Asset (NPA) ratio is 2.8%. Which of the following asset classification would NOT be included in this calculation?
Answer: D
NPA includes substandard, doubtful, and loss assets. Standard assets (performing assets) are excluded from NPA calculations as per RBI's asset classification guidelines.
Q.49Hard
Under the Payment Systems Operator (PSO) framework by RBI, what is the maximum transaction value limit for prepaid payment instruments without KYC?
Answer: A
RBI's guidelines on prepaid payment instruments specify that transactions up to ₹10,000 can be conducted without full KYC verification for semi-closed systems.
Q.50Easy
Bank Y's Earnings Per Share (EPS) increased from ₹45 to ₹54 year-on-year. What is the percentage growth in EPS?
Which RBI initiative aims to provide affordable credit to the unbanked and underbanked population through banks?
Answer: A
Priority Sector Lending mandates that banks lend at least 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors including agriculture, MSMEs, and weaker sections, promoting financial inclusion.
Q.52Hard
A retail bank's Gross Non-Performing Assets increased by 120 basis points from 2.5% to 3.7% in a year. If total advances are ₹80,000 crores, what is the approximate increase in absolute NPA amount in crores?
Answer: A
Increase in basis points = 120 bps = 1.2%. Increase in NPA amount = 1.2% of ₹80,000 crores = ₹960 crores
Q.53Medium
Under the RBI's Digital Rupee (e₹) initiative, which of the following is a primary objective?
Answer: B
The RBI's Digital Rupee (CBDC) aims to offer a digital alternative for payments and settlements while maintaining physical currency circulation. It enhances payment efficiency and financial security.
Q.54Medium
If a bank's Return on Equity (ROE) is 18% and its Equity Capital is ₹5,000 crores, what is its Net Profit?
Which government scheme provides deposit insurance coverage up to ₹5 lakh per depositor per bank?
Answer: B
DICGC, established under the RBI, provides deposit insurance covering up to ₹5 lakh per depositor per bank per financial year, protecting depositors' interests in case of bank failure.
Q.56Medium
In data interpretation, if Bank P's market share increased from 8.5% to 9.8% and total market size is ₹50,00,000 crores, what is the increase in Bank P's market share value in crores?
Answer: B
Market share increase = 9.8% - 8.5% = 1.3%. Value increase = 1.3% of ₹50,00,000 = ₹6,500 crores
Q.57Hard
What is the primary purpose of the Basel III accord's countercyclical capital buffer (CCyB) requirement for banks?
Answer: B
The CCyB is a macroprudential tool requiring banks to hold additional capital (0-2.5% of RWA) during periods of rapid credit expansion, enabling them to lend counter-cyclically during downturns.
Q.58Medium
Bank Z's Interest Coverage Ratio (ICR) is 8.5x. What does this indicate regarding the bank's debt servicing capability?
Answer: C
An ICR of 8.5x means earnings are 8.5 times the interest obligations, indicating strong capacity to service debt. ICR > 2.5x is generally considered healthy; 8.5x is excellent.
Q.59Easy
If Bank X's Current Ratio is 1.8 and its Quick Ratio is 1.2, what can be inferred about the bank's liquidity position?
Answer: C
A Current Ratio of 1.8 and Quick Ratio of 1.2 indicates the bank can cover current liabilities 1.8 times with all current assets and 1.2 times with only the most liquid assets, suggesting healthy liquidity.
Q.60Easy
In 2024, the RBI mandated that banks maintain a minimum Capital Adequacy Ratio (CAR) of what percentage under Basel III framework?
Answer: B
Under Basel III, banks must maintain a minimum CAR of 10.5%, which includes a 4.5% Tier 1 capital ratio, a 6% Tier 1 capital plus Tier 2 ratio, and a 2.5% capital conservation buffer.
