As per recent RBI guidelines (2024), what is the threshold loan amount for priority sector lending to agriculture?
RBI prescribes priority sector lending to agriculture with a loan limit of ₹50 lakhs for individual farmers.
Which of the following is a characteristic of a Certificate of Deposit (CD)?
CDs are negotiable instruments issued by banks at a discount, sold in the money market, with fixed maturity periods.
What does CASA ratio signify in banking?
CASA ratio reflects the proportion of Current Accounts to Savings Accounts, indicating low-cost deposit base quality.
Which RBI scheme allows banks to lend against government securities as collateral?
Securities borrowing and lending allows banks to manage their security portfolios by borrowing/lending government securities.
What is the mandated percentage of credit disbursement for Micro and Small Enterprises (MSE) under priority sector lending?
RBI mandates that at least 12% of total priority sector lending should go to Micro and Small Enterprises.
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In banking terminology, what does 'Amortization' refer to?
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)?
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?
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?
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?
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?
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?
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?
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?
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)?
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)?
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?
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)?
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?
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 clean demand draft is one that is not drawn against any trade documents or merchandise, issued purely as credit.
