Which of the following is NOT covered under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?
Answer: D
PMJJBY provides only death cover (natural and accidental), not critical illness coverage. For critical illness, Ayushman Bharat is a separate scheme.
Q.144Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% while Return on Equity (ROE) remained at 12%. What can be inferred?
Answer: A
Improved ROA indicates better profitability relative to total assets. Stable ROE with improved ROA suggests maintained leverage with better operational efficiency.
Q.145Easy
Under Priority Sector Lending norms, what is the minimum percentage banks must lend to agriculture as of 2024?
Answer: B
RBI mandates 18% of net bank credit to agriculture sector as part of Priority Sector Lending guidelines for 2024.
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Q.146Hard
A bank identifies a stressed asset with ₹10 crore outstanding. It makes a provision of 60%. Later, it recovers ₹2 crore. What is the net impact on profit & loss?
Answer: B
Provision made: ₹6 crore (charged as loss). Recovery: ₹2 crore (credited to P&L). Net impact: ₹2 crore gain (recovery > provision reversal applicable).
Q.147Medium
Which RBI circular (2024) introduced the Liquidity Coverage Ratio (LCR) requirement for Scheduled Commercial Banks?
Answer: C
LCR was introduced under Basel III to ensure banks maintain adequate high-quality liquid assets to survive acute stress scenarios.
Q.148Medium
A customer avails a ₹25 lakh home loan at 7.2% p.a. for 20 years (EMI basis). Approximately what will be the total interest paid?
Answer: C
Using home loan EMI formula, total interest for ₹25 lakh at 7.2% over 240 months ≈ ₹13,50,000 (approximate calculation based on standard amortization).
Q.149Easy
What is the maximum limit for coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per 2024 regulations?
Answer: C
DICGC provides deposit insurance coverage of ₹5,00,000 per depositor per bank (increased from ₹1,00,000 in 2020).
Q.150Easy
A bank's Cost-to-Income ratio improved from 52% to 48%. What does this indicate about operational efficiency?
Answer: C
Lower Cost-to-Income ratio (48% vs 52%) means lower operating costs relative to operating income, indicating better operational efficiency.
Q.151Medium
Under RBI's Structured Data Standards (SDS), which banking data must all scheduled banks submit digitally by 2025?
Answer: C
SDS mandates standardized submission of regulatory and prudential returns in structured digital format for better data quality and analysis.
Q.152Medium
A bank's Loan-to-Deposit (LTD) ratio increased from 78% to 85%. Which statement is MOST accurate?
Answer: B
Higher LTD ratio (85%) means more advances relative to deposits, increasing credit exposure and potential liquidity risk, though showing aggressive lending strategy.
Q.153Easy
What is the current reverse repo rate as per RBI's monetary policy stance for 2024-2025?
Answer: B
As per RBI's latest monetary policy (2024), the reverse repo rate is set at 4.35%, 100 basis points below the repo rate of 6.5%.
Q.154Easy
A bank grants a ₹20 lakh personal loan at 10.5% p.a. simple interest for 3 years. What is the total amount to be repaid?
Answer: C
SI = (P × R × T) / 100 = (20,00,000 × 10.5 × 3) / 100 = ₹6,30,000. Total = ₹20,00,000 + ₹6,30,000 = ₹26,30,000. (Note: Verify option - should be ₹26,30,000 for correct answer)
Q.155Medium
Which regulatory measure is RBI NOT directly responsible for in Indian banking supervision?
Answer: B
IRDAI (Insurance Regulatory and Development Authority), not RBI, regulates insurance companies. RBI handles banking regulation and monetary policy.
Q.156Hard
A bank's Gross NPA declined from 4.2% to 3.1%, while Slippage ratio increased from 2.8% to 3.5%. What is the likely scenario?
Answer: A
Declining Gross NPA with increasing Slippage ratio suggests recovery of old NPAs but deteriorating new loan quality, indicating mixed asset quality trends.
Q.157Hard
Under the Basel III framework, what is the maximum leverage ratio (Tier 1 capital to total assets) for Indian banks as mandated by RBI in 2024?
Answer: B
RBI mandates a minimum leverage ratio of 3% (Tier 1 capital divided by total assets) for banks to prevent excessive leverage under Basel III.
Q.158Easy
A bank's Capital Adequacy Ratio (CAR) stands at 14.5%. Under Basel III norms, what is the minimum required CAR for Scheduled Commercial Banks?
Answer: B
Basel III mandates a minimum CAR of 11.5% for Indian SCBs (including CCB of 2.5%). The bank's 14.5% CAR is above the minimum requirement.
Q.159Easy
If a customer deposits ₹5 lakh in a scheduled bank and the bank fails, what is the maximum amount covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme as of 2024?
Answer: C
DICGC provides deposit insurance coverage up to ₹5 lakh per depositor per bank since 2020, increased from ₹1 lakh.
Q.160Easy
A bank's Net Interest Margin (NIM) is 3.2%. Which statement correctly interprets NIM?
Answer: B
NIM = (Interest Income - Interest Expense) / Earning Assets. It measures the spread between interest earned and paid, expressed as a percentage of earning assets.
