Bank PO / Clerk / RBI - MCQ Practice Questions

As per RBI's framework, the MPC conducts 6 monetary policy reviews annually (bimonthly).

The difference is 3.1% - 2.8% = 0.3 percentage points. This is different from percentage change.

RBI mandates 40% of net bank credit to be allocated to Priority Sector Lending for scheduled commercial banks.

Equity = Assets - Liabilities = ₹5,00,000 crore - ₹4,70,000 crore = ₹30,000 crore.

Net Profit = ROA × Total Assets = 1.2% × ₹8,00,000 crore = ₹9,600 crore.

As per Basel III implementation in India, RBI requires banks to maintain a minimum LCR of 100%.

Cost-to-Income Ratio = Operating Expenses/Operating Income. 45% means ₹45 spent to generate ₹100 in income, which is relatively good.

SLR is an RBI-specific regulation predating Basel III. Basel III includes CAR, LCR, and NSFR.

After 2 years of EMI payments, the principal balance is reduced. A ₹10 lakh part-payment further reduces this, resulting in less than ₹40 lakh remaining.

As of late 2024, RBI's repo rate is in the range of 6.25%-6.5% under the current monetary tightening cycle.

Growth = (3,54,000 - 3,00,000) / 3,00,000 × 100 = 54,$\frac{000}{3}$,00,000 × 100 = 18%.

PMMY provides loans up to ₹10 lakh for micro and small enterprises without requiring collateral.

Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.

RBI mandates KYC updation every 10 years for regular customers, though higher-risk categories may require more frequent updates.

Quarterly rate = 6.2%/4 = 1.55%, n = 8 quarters. Amount = 1,00,000 × (1.0155)^8 ≈ 1,00,000 × 1.128 = ₹1,12,800.

The Standing Deposit Facility allows banks to place funds with RBI at a fixed rate (typically 25-50 bps below repo) to manage liquidity surplus.

PCR = (Gross NPA - Net NPA) / Gross NPA × 100 = (2.5 - 0.8) / 2.5 × 100 = 1.$\frac{7}{2}$.5 × 100 = 68%.

A lower Net NPA ratio indicates fewer non-performing assets relative to total advances, showing better asset quality and credit risk management by the bank.

RBI mandates a minimum CET1 capital ratio of 6.5% for Indian banks under Basel III framework to ensure financial stability.

Using A = P(1 + r/400)^n where P=50000, r=4, n=8 quarters: A = 50000(1.01)^8 = ₹54,120.25