Banking Awareness, Regulations and compliances

Code 64C7D6 · Online · 31 Oct 2026 · organised by Kamlesh
4 candidates · total marks 80.00

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RankNameMarks
1Deepak Singh56.25 / 80.00
2TRSHARMA49.75 / 80.00
3Kamlesh kamlesh26.25 / 80.00
4Mohit Bajpai12.50 / 80.00

Question paper & answers

Q1. Under the RBI's revised framework for resolution of stressed assets (June 2019), what is the maximum review period (in days) allowed after the initial 30-day review period for a borrower in default to implement a resolution plan before additional provisioning is triggered? 1.00

  • A. 90 days
  • B. 180 days
  • C. 30 days
  • D. 60 days
Correct: B
The June 2019 circular allows an initial 30-day review period followed by an implementation period of up to 180 days before additional provisioning applies.

Q2. In working capital assessment under the Nayak Committee (II) method for turnover up to Rs. 5 crore, the working capital requirement is computed as a percentage of projected annual turnover. What is that percentage? 1.00

  • A. 25%
  • B. 15%
  • C. 20%
  • D. 10%
Correct: C
The Nayak Committee II method uses 20% of projected annual turnover as the working capital requirement for small borrowers.

Q3. As per RBI norms, an account is classified as an NPA if interest or principal remains overdue for more than how many days (the 90-day norm)? 1.00

  • A. 90 days
  • B. 180 days
  • C. 60 days
  • D. 30 days
Correct: A
The 90-day overdue norm is the standard definition of a non-performing asset under RBI guidelines.

Q4. A term loan account classified as a 'Doubtful' asset for more than 3 years but up to 4 years attracts what general provisioning percentage for the secured portion? 1.00

  • A. 40%
  • B. 25%
  • C. 100%
  • D. 15%
Correct: A
For doubtful assets over 3 years but up to 4 years, the secured portion attracts 40% provisioning.

Q5. Under the SARFAESI Act, 2002, what is the minimum quantum of secured debt that must be due for a secured creditor to initiate enforcement action? 1.00

  • A. Rs. 5 lakh
  • B. Rs. 1 lakh
  • C. Rs. 10 lakh
  • D. Rs. 20 lakh
Correct: B
SARFAESI enforcement requires the secured debt due to be at least Rs. 1 lakh (as per the Act's definition of 'secured debt').

Q6. Under SARFAESI, after a borrower's representation against a demand notice under Section 13(2), within how many days must the secured creditor communicate its decision? 1.00

  • A. 30 days
  • B. 7 days
  • C. 15 days
  • D. 60 days
Correct: B
The secured creditor must communicate its decision on the borrower's representation within 7 days under Section 13(3A).

Q7. For a sub-standard asset, what is the general provisioning requirement on the secured portion as per RBI norms? 1.00

  • A. 25%
  • B. 10%
  • C. 15%
  • D. 20%
Correct: C
Sub-standard assets attract a general provision of 15% on the secured portion.

Q8. Under the RBI's prudential norms, a loan restructured due to financial difficulty of the borrower is generally classified as which of the following? 1.00

  • A. Standard immediately
  • B. Sub-standard
  • C. Loss asset
  • D. Doubtful
Correct: B
Restructured accounts due to financial difficulty are generally downgraded to sub-standard unless specified otherwise.

Q9. In the MPBF method under the Tandon Committee, which of the following represents the maximum permissible bank finance under Method I? 1.00

  • A. 75% of the working capital gap
  • B. 100% of the working capital gap
  • C. 60% of current assets
  • D. Current assets minus current liabilities
Correct: A
Tandon Committee Method I permits MPBF up to 75% of the working capital gap.

Q10. Under the Tandon Committee's Method II, the borrower must contribute what percentage of current assets as a minimum? 1.00

  • A. 10%
  • B. 25%
  • C. 15%
  • D. 20%
Correct: B
Method II requires the borrower to hold at least 25% of current assets as margin.

Q11. A 'loss asset' under RBI norms is one where the loss has been identified but the amount has not been written off wholly. What provisioning is required for a loss asset? 1.00

  • A. 50%
  • B. 75%
  • C. 100%
  • D. 40%
Correct: C
Loss assets require 100% provisioning since the loss has been identified by the bank or auditors.

Q12. Under the SARFAESI Act, the borrower can file an appeal against the secured creditor's action under Section 13(4) before the Debt Recovery Tribunal within how many days? 1.00

  • A. 45 days
  • B. 30 days
  • C. 60 days
  • D. 90 days
Correct: A
An appeal under Section 17 of SARFAESI must be filed within 45 days of the enforcement action.

Q13. For infrastructure and project loans, RBI permits a standstill period during which the project is under implementation. What is the typical maximum duration of this standstill period before the account is classified as NPA? 1.00

  • A. 1 year
  • B. 3 years
  • C. 2 years
  • D. 6 months
Correct: A
RBI allows a one-year standstill period for commercially operational infrastructure projects before NPA classification.

Q14. Which of the following is NOT a valid ground for treating a restructured account as a 'standard' asset under RBI's special dispensation? 1.00

  • A. Restructuring of micro and small enterprise accounts
  • B. Restructuring due to natural calamities
  • C. Restructuring of large corporate accounts with promoter contribution below threshold
  • D. Restructuring of accounts under a board-approved scheme for MSMEs
Correct: C
Large corporate restructuring with inadequate promoter contribution does not qualify for standard asset treatment.

Q15. In credit appraisal, the Debt Service Coverage Ratio (DSCR) is considered acceptable at a minimum of what level for term loan appraisal? 1.00

  • A. 1.00
  • B. 1.50
  • C. 2.00
  • D. 1.25
Correct: D
A minimum DSCR of 1.25 is generally considered acceptable for term loan appraisal.

Q16. Under SARFAESI, the secured creditor must serve a demand notice under Section 13(2) giving the borrower how many days to discharge the liability? 1.00

  • A. 30 days
  • B. 90 days
  • C. 60 days
  • D. 15 days
Correct: C
The Section 13(2) notice gives the borrower 60 days to discharge the secured debt.

Q17. For a doubtful asset that has remained doubtful for more than 4 years, what is the provisioning requirement on the secured portion? 1.00

  • A. 40%
  • B. 100%
  • C. 50%
  • D. 25%
Correct: B
Doubtful assets over 4 years require 100% provisioning on the secured portion.

Q18. Under the RBI's Prudential Framework for Resolution of Stressed Assets (2019), a borrower's account must be classified as NPA if the default continues for how many days? 1.00

  • A. 60 days
  • B. 30 days
  • C. 90 days
  • D. 120 days
Correct: C
The framework retains the 90-day overdue norm for NPA classification.

Q19. In working capital assessment, which of the following best describes the 'working capital gap'? 1.00

  • A. Current assets minus current liabilities excluding bank borrowings
  • B. Total assets minus total liabilities
  • C. Current assets minus current liabilities including bank borrowings
  • D. Fixed assets minus long-term liabilities
Correct: A
The working capital gap is current assets minus current liabilities excluding bank borrowings for working capital.

Q20. Which of the following restructuring conditions would require the account to be classified as NPA immediately upon restructuring? 1.00

  • A. Restructuring of an MSME account under a board-approved policy
  • B. Restructuring where the borrower's account was already a sub-standard asset before restructuring
  • C. Restructuring due to a natural calamity with RBI dispensation
  • D. Restructuring of a standard account with adequate promoter contribution
Correct: B
If the account was already sub-standard before restructuring, it remains classified as NPA after restructuring.

Q21. A term loan account of Rs 80 lakh shows net profit of Rs 20 lakh, depreciation Rs 8 lakh, and interest on term loan Rs 6 lakh. Term loan instalments due in the year are Rs 10 lakh. What is the DSCR, and does the account qualify as an NPA if instalments remain unpaid for 95 days? 1.00

  • A. DSCR 2.10; account is a standard asset since overdue is below 90 days
  • B. DSCR 3.40; account is an NPA since overdue exceeds 90 days
  • C. DSCR 2.10; account is an NPA since overdue exceeds 90 days
  • D. DSCR 1.70; account is a standard asset as DSCR is above 1
Correct: C
DSCR = (20+8+6)/16 = 2.10, and overdue beyond 90 days makes the term loan an NPA under IRAC norms.

Q22. A borrower's total outside liabilities are Rs 90 lakh and tangible net worth is Rs 30 lakh. The account has been classified substandard for 14 months and the bank holds a registered mortgage. Under IRAC norms, what provision is required and what is the TOL/TNW ratio? 1.00

  • A. TOL/TNW 3.00; provision at 15% of secured exposure as substandard
  • B. TOL/TNW 3.00; provision at 25% of secured exposure as substandard
  • C. TOL/TNW 0.33; provision at 25% of secured exposure as substandard
  • D. TOL/TNW 3.00; provision at 40% of secured exposure as doubtful
Correct: B
TOL/TNW = 90/30 = 3.00, and a substandard secured account attracts 25% provision under IRAC.

Q23. A secured loan of Rs 50 lakh (security value Rs 40 lakh) is classified as doubtful for over 3 years. The bank wants to enforce security under SARFAESI. Which statement is correct regarding provision and SARFAESI action? 1.00

  • A. Provision at 40% of secured exposure is required, and SARFAESI notice can be issued after 90 days default
  • B. Provision at 100% of secured exposure is required, and SARFAESI notice can be issued immediately on default
  • C. Provision at 40% of secured exposure is required, and SARFAESI notice can be issued only after 180 days default
  • D. Provision at 30% of secured exposure is required, and SARFAESI action requires court decree first
Correct: A
Doubtful over 3 years attracts 40% provision, and SARFAESI demand notice follows 90-day NPA classification.

Q24. A firm has current assets of Rs 60 lakh and current liabilities of Rs 40 lakh. Its cash credit account is overdue for 100 days. The bank plans SARFAESI action. What is the current ratio, and is SARFAESI applicable? 1.00

  • A. Current ratio 1.50; SARFAESI not applicable as account is standard
  • B. Current ratio 0.67; SARFAESI applicable as account is NPA
  • C. Current ratio 1.50; SARFAESI applicable as account is NPA
  • D. Current ratio 1.20; SARFAESI applicable only after 180 days
Correct: C
Current ratio = 60/40 = 1.50, and 100-day overdue makes it an NPA, enabling SARFAESI.

Q25. A borrower's DSCR is 1.10, TOL/TNW is 4.50, and current ratio is 0.90. The account is a doubtful asset with security cover of 60%. Under IRAC and SARFAESI, which combination is most appropriate? 1.00

  • A. Weak ratios; classify as substandard and issue SARFAESI notice after 90 days
  • B. Weak ratios; classify as doubtful and consider SARFAESI enforcement with higher provisioning
  • C. Strong ratios; upgrade to standard and withdraw SARFAESI proceedings
  • D. Weak ratios; classify as loss asset and write off immediately without notice
Correct: B
Poor DSCR, high TOL/TNW and low current ratio support doubtful classification with SARFAESI action and higher provision.

Q26. Under Basel III, which component of the capital conservation buffer must be met with Common Equity Tier 1 (CET1) and is expressed as a percentage of total risk-weighted assets? 1.00

  • A. 2.5% of RWA, on top of the minimum 4.5% CET1 requirement
  • B. 2.5% of RWA, replacing part of the Tier 2 requirement
  • C. 1.5% of RWA, counted within the Tier 1 additional requirement
  • D. 0.625% of RWA, applied only to G-SIBs
Correct: A
The capital conservation buffer is 2.5% of RWA and must be met with CET1 above the 4.5% minimum.

Q27. A bank reports CET1 capital of 300, AT1 of 60, and Tier 2 of 90 (all in currency units), with RWA of 4,000. What is its total capital ratio and CRAR adequacy status against the 8% minimum? 1.00

  • A. 9.0%, below the minimum
  • B. 11.25%, above the minimum
  • C. 7.5%, below the minimum
  • D. 10.5%, above the minimum
Correct: B
Total capital is 450; 450/4,000 = 11.25%, which exceeds the 8% minimum.

Q28. Under the standardized approach for credit risk, which of the following exposures typically attracts the highest risk weight for an unrated corporate borrower? 1.00

  • A. Residential mortgage loans with loan-to-value below 80%
  • B. Claims on sovereigns denominated in domestic currency
  • C. Unrated corporate exposures
  • D. Cash holdings
Correct: C
Unrated corporate exposures generally carry a 100% risk weight, higher than secured mortgages and sovereign claims.

Q29. Under the Liquidity Coverage Ratio, which of the following is classified as a Level 1 high-quality liquid asset? 1.00

  • A. AA-rated corporate bonds
  • B. Central bank reserves
  • C. Covered bonds rated AA-
  • D. Residential mortgage-backed securities rated AAA
Correct: B
Central bank reserves are Level 1 HQLA, while the other instruments fall into Level 2 categories.

Q30. A bank has HQLA of 900 and projected net cash outflows over 30 days of 750. Its LCR and the regulatory consequence are best described as: 1.00

  • A. 80%, below the 100% minimum, requiring a remediation plan
  • B. 120%, above the 100% minimum, compliant
  • C. 100%, exactly at the minimum, compliant
  • D. 83.3%, below the minimum, non-compliant
Correct: B
LCR = 900/750 = 120%, which satisfies the 100% minimum.

Q31. The Net Stable Funding Ratio requires available stable funding to be at least what proportion of required stable funding, and over what horizon is it assessed? 1.00

  • A. 100% over a one-year horizon
  • B. 100% over a 30-day horizon
  • C. 90% over a one-year horizon
  • D. 110% over a 30-day horizon
Correct: A
NSFR requires ASF to be at least 100% of RSF over a one-year horizon.

Q32. In asset-liability management, a positive maturity gap (rate-sensitive assets exceed rate-sensitive liabilities) implies which exposure when interest rates rise? 1.00

  • A. A gain, because liabilities reprice faster than assets
  • B. No exposure, because the gap is matched
  • C. A loss, because asset yields are fixed while funding costs rise
  • D. A gain, because assets reprice faster than liabilities
Correct: D
A positive gap means more assets than liabilities reprice upward, increasing net interest income when rates rise.

Q33. Which statement best describes the economic value of equity (EVE) perspective of interest rate risk in the banking book? 1.00

  • A. It measures the change in the present value of assets and liabilities for a given rate shock
  • B. It measures only the one-year impact on net interest income
  • C. It ignores the repricing characteristics of non-maturity deposits
  • D. It applies only to trading book positions
Correct: A
EVE captures the sensitivity of the present value of the balance sheet to interest rate shocks.

Q34. Under the Basel operational risk framework, the Basic Indicator Approach calculates the capital charge as a fixed percentage of which measure? 1.00

  • A. Total risk-weighted assets
  • B. Gross income averaged over three years
  • C. Net interest margin
  • D. Total loans and advances
Correct: B
The Basic Indicator Approach applies 15% to average annual gross income over three years.

Q35. In credit risk measurement, which of the following best describes expected loss under the IRB approach? 1.00

  • A. Exposure at default multiplied by loss given default only
  • B. Probability of default multiplied by loss given default only
  • C. Probability of default multiplied by loss given default multiplied by exposure at default
  • D. Exposure at default divided by probability of default
Correct: C
Expected loss equals PD × LGD × EAD under the internal ratings-based approach.

Q36. A bank has CET1 capital of 120, Tier 1 capital of 150, total capital of 200, and total RWA of 2,500. What is its total capital adequacy ratio (CRAR)? 1.00

  • A. 6.0%
  • B. 8.0%
  • C. 4.8%
  • D. 10.0%
Correct: B
CRAR = total capital / RWA = 200 / 2,500 = 8.0%.

Q37. A bank holds high-quality liquid assets (HQLA) of 900 and expects net cash outflows of 750 over the next 30 days under the stress scenario. Its liquidity coverage ratio (LCR) is approximately: 1.00

  • A. 83%
  • B. 120%
  • C. 150%
  • D. 90%
Correct: B
LCR = HQLA / net cash outflows = 900 / 750 = 120%.

Q38. A bank has rate-sensitive assets of 1,800 and rate-sensitive liabilities of 1,500, with an average asset duration of 3 years and average liability duration of 2 years. The duration gap is closest to: 1.00

  • A. 1.67 years
  • B. 1.00 year
  • C. 2.33 years
  • D. 0.67 years
Correct: A
Duration gap = asset duration - (liabilities/assets) x liability duration = 3 - (1,500/1,800) x 2 = 1.67 years.

Q39. Under a risk-based AML approach, which customer scenario most clearly warrants enhanced due diligence beyond standard identification? 1.00

  • A. A salaried employee opening a current account with regular payroll credits
  • B. A newly incorporated shell company with nominee directors and no verifiable business activity
  • C. A pensioner transferring monthly pension receipts to a savings account
  • D. A student opening a low-value account with a local address
Correct: B
Shell companies with nominee directors and no genuine business activity present elevated money-laundering risk requiring EDD.

Q40. A customer is identified as a PEP. Which action best reflects FATF-aligned obligations? 1.00

  • A. Automatically reject the relationship regardless of risk
  • B. Apply standard CDD because PEP status alone is not a risk factor
  • C. Obtain senior management approval, establish source of wealth and funds, and conduct enhanced ongoing monitoring
  • D. Only verify identity and proceed with normal monitoring
Correct: C
PEPs require senior management approval, source of wealth/funds checks, and enhanced ongoing monitoring.

Q41. Which characteristic most distinguishes a suspicious transaction report from a currency transaction report? 1.00

  • A. An STR is filed only for cash transactions above a fixed threshold
  • B. A CTR is based on suspicion rather than amount
  • C. An STR is based on suspicion of illicit activity, whereas a CTR is triggered by a monetary threshold
  • D. Both are triggered solely by transaction amount
Correct: C
STRs are suspicion-based, while CTRs are threshold-based cash reporting requirements.

Q42. A bank receives a court order freezing an account tied to a filed STR. What is the most appropriate immediate action? 1.00

  • A. Inform the customer of the STR and the freeze to maintain transparency
  • B. Comply with the freeze, preserve records, and avoid tipping off the customer about the STR
  • C. Unfreeze the account because the STR was already filed
  • D. Close the account and return the funds to the customer
Correct: B
Freeze orders must be complied with, and tipping off the customer about an STR is prohibited.

Q43. In a card-not-present fraud, the bank's liability position is strongest when it can demonstrate which of the following? 1.00

  • A. The customer shared their OTP with a third party
  • B. The transaction was authenticated using strong customer authentication and the customer's credentials were not compromised
  • C. The merchant is located overseas
  • D. The transaction amount was below the chargeback threshold
Correct: B
Where strong customer authentication was applied and the customer was not negligent, liability generally shifts away from the customer.

Q44. Under typical unauthorised transaction liability rules, which customer behaviour most likely shifts liability to the customer? 1.00

  • A. Reporting the loss of a card immediately upon discovery
  • B. Failing to notify the bank for several weeks after noticing unauthorised debits
  • C. Using a PIN at an ATM
  • D. Enabling transaction alerts on the mobile app
Correct: B
Gross negligence or unreasonable delay in reporting unauthorised transactions can shift liability to the customer.

Q45. Which control most effectively mitigates account takeover via SIM-swap fraud in digital banking? 1.00

  • A. Relying solely on SMS OTP for authentication
  • B. Increasing SMS OTP validity to ten minutes for convenience
  • C. Combining device binding, behavioural analytics, and out-of-band authentication not dependent on SMS
  • D. Disabling transaction notifications to reduce customer confusion
Correct: C
Layered authentication independent of SMS, plus device binding and analytics, reduces SIM-swap account takeover risk.

Q46. A bank detects a spike in authorised push payment fraud where victims are socially engineered into transferring funds. Which measure best addresses this risk? 1.00

  • A. Raising transfer limits to reduce friction
  • B. Implementing confirmation of payee, behavioural risk scoring, and customer warnings at the point of transfer
  • C. Removing call-back verification to speed up payments
  • D. Relying only on post-transaction monitoring
Correct: B
Confirmation of payee, real-time risk scoring, and warnings at the point of transfer help prevent APP fraud.

Q47. In a zero-trust security architecture for digital banking, which principle is most central? 1.00

  • A. Trusting all traffic inside the corporate network perimeter
  • B. Granting broad access to reduce authentication friction
  • C. Continuously verifying identity and enforcing least-privilege access for every request
  • D. Relying on a single strong perimeter firewall
Correct: C
Zero trust requires continuous verification and least-privilege access regardless of network location.

Q48. Which scenario is most indicative of structuring intended to evade reporting thresholds? 1.00

  • A. A customer making a single large deposit with full documentation
  • B. Multiple cash deposits just below the reporting threshold across several branches on consecutive days
  • C. A customer receiving regular salary credits
  • D. A customer making a one-time international wire with supporting invoices
Correct: B
Repeated deposits just below the threshold across branches are a classic structuring pattern to evade reporting.

Q49. A bank's transaction monitoring system generates a high volume of false positives. Which approach best improves effectiveness without increasing risk? 1.00

  • A. Disabling alerts below a high amount to reduce workload
  • B. Tuning scenarios using risk segmentation and feedback loops while retaining coverage of high-risk typologies
  • C. Closing alerts automatically after 24 hours
  • D. Reducing CDD requirements to lower alert volumes
Correct: B
Risk-based tuning with feedback loops reduces false positives while preserving detection of high-risk activity.

Q50. Which measure best protects a mobile banking app against malware-based overlay attacks on Android devices? 1.00

  • A. Relying on the device's default screen lock only
  • B. Disabling root detection to improve compatibility
  • C. Implementing app shielding, root/jailbreak detection, and transaction signing with server-side verification
  • D. Sending OTPs via SMS to the same device
Correct: C
App shielding, integrity checks, and server-verified transaction signing counter overlay and malware attacks.

Q51. Under the RBI Act, 1934, what is the minimum rate at which the RBI must always maintain the CRR for scheduled commercial banks? 1.00

  • A. 3% of NDTL
  • B. 4% of NDTL
  • C. No statutory floor exists
  • D. 5.5% of NDTL
Correct: C
The statutory floor of 3% was removed by amendment, so the RBI can set CRR without a statutory minimum.

Q52. Which RBI department is responsible for conducting Open Market Operations in government securities? 1.00

  • A. Department of Supervision
  • B. Financial Markets Regulation Department
  • C. Department of Currency Management
  • D. Internal Debt Management Department
Correct: D
IDMD manages OMO and government securities operations for the RBI.

Q53. In the liquidity adjustment framework, the Marginal Standing Facility allows banks to borrow overnight against government securities up to what limit of their NDTL? 1.00

  • A. 2% of NDTL
  • B. 1% of NDTL
  • C. 3% of NDTL
  • D. 5% of NDTL
Correct: A
Banks can dip into SLR securities up to 2% of NDTL under MSF.

Q54. The RBI's 'Operation Twist' involves which simultaneous action? 1.00

  • A. Buying short-term and selling long-term securities
  • B. Buying long-term and selling short-term government securities
  • C. Selling both long-term and short-term securities
  • D. Buying both long-term and short-term securities
Correct: B
Operation Twist purchases long-dated G-secs while selling short-dated ones to flatten the yield curve.

Q55. Under Basel III liquidity standards, the Liquidity Coverage Ratio requires banks to hold high-quality liquid assets to cover net cash outflows over how many days? 1.00

  • A. 7 days
  • B. 14 days
  • C. 30 days
  • D. 90 days
Correct: C
LCR mandates HQLA sufficient for 30 calendar days of stressed net cash outflows.

Q56. Which of the following is NOT a quantitative tool of monetary policy? 1.00

  • A. Cash Reserve Ratio
  • B. Moral suasion
  • C. Repo rate
  • D. Open Market Operations
Correct: B
Moral suasion is a qualitative or selective credit control tool.

Q57. Which committee recommended the setting up of the Monetary Policy Committee with a flexible inflation targeting framework? 1.00

  • A. Urjit Patel Committee
  • B. Nachiket Mor Committee
  • C. P. J. Nayak Committee
  • D. Bimal Jalan Committee
Correct: A
The Urjit Patel Committee (2014) recommended CPI-based inflation targeting and an MPC.

Q58. The RBI's 'Standing Deposit Facility' differs from the reverse repo primarily because it: 1.00

  • A. Requires government securities as collateral
  • B. Is available only to primary dealers
  • C. Accepts deposits without any collateral
  • D. Has a longer tenor of 28 days
Correct: C
SDF absorbs liquidity without the need for banks to pledge collateral, unlike reverse repo.

Q59. Under the Pradhan Mantri Jan Dhan Yojana, what is the maximum accident insurance cover available on RuPay cards for accounts opened after 28 August 2018? 1.00

  • A. Rs 1 lakh
  • B. Rs 2 lakh
  • C. Rs 5 lakh
  • D. Rs 10 lakh
Correct: B
Accident insurance cover on eligible RuPay cards was enhanced to Rs 2 lakh.

Q60. The Stand-Up India scheme provides loans to SC/ST and women entrepreneurs in the range of: 1.00

  • A. Rs 10 lakh to Rs 1 crore
  • B. Rs 50,000 to Rs 10 lakh
  • C. Rs 1 crore to Rs 5 crore
  • D. Rs 5 lakh to Rs 50 lakh
Correct: A
Stand-Up India offers composite loans between Rs 10 lakh and Rs 1 crore for greenfield enterprises.

Q61. Under the Mudra Yojana, which category covers loans above Rs 50,000 up to Rs 5 lakh? 1.00

  • A. Shishu
  • B. Tarun
  • C. Kishore
  • D. Bal
Correct: C
Kishore covers loans from Rs 50,001 to Rs 5 lakh.

Q62. The Atal Pension Yojana guarantees a minimum monthly pension ranging from: 1.00

  • A. Rs 1,000 to Rs 5,000
  • B. Rs 500 to Rs 3,000
  • C. Rs 2,000 to Rs 10,000
  • D. Rs 3,000 to Rs 15,000
Correct: A
APY offers guaranteed pension between Rs 1,000 and Rs 5,000 per month based on contributions.

Q63. Which scheme provides collateral-free loans up to Rs 10 lakh to street vendors under the PM SVANidhi programme in its current enhanced form? 1.00

  • A. Rs 50,000
  • B. Rs 1 lakh
  • C. Rs 5 lakh
  • D. Rs 10 lakh
Correct: D
The scheme's loan ceiling was enhanced to Rs 10 lakh for eligible street vendors.

Q64. Under the Pradhan Mantri Jeevan Jyoti Bima Yojana, what is the annual premium and life cover respectively? 1.00

  • A. Rs 330 and Rs 2 lakh
  • B. Rs 436 and Rs 2 lakh
  • C. Rs 342 and Rs 5 lakh
  • D. Rs 200 and Rs 1 lakh
Correct: B
PMJJBY offers a Rs 2 lakh life cover for an annual premium of Rs 436.

Q65. In Fiedler's contingency model of leadership, leadership effectiveness depends on the interaction of leadership style with: 1.00

  • A. Subordinate maturity levels
  • B. Situational favourableness
  • C. Path-goal clarity
  • D. Leader-member exchange quality
Correct: B
Fiedler posits that effectiveness depends on leader style and situational favourableness.

Q66. According to Herzberg's two-factor theory, which of the following is a motivator rather than a hygiene factor? 1.00

  • A. Salary
  • B. Company policy
  • C. Recognition
  • D. Working conditions
Correct: C
Recognition is a motivator; salary, policy and working conditions are hygiene factors.

Q67. In the Blake and Mouton managerial grid, a leader scoring 9,1 represents which style? 1.00

  • A. Country club management
  • B. Team management
  • C. Impoverished management
  • D. Task (authority-compliance) management
Correct: D
High concern for production and low concern for people indicates task management.

Q68. Which leadership theory is associated with the concept of 'transactional versus transformational' leadership? 1.00

  • A. Burns and Bass
  • B. Hersey and Blanchard
  • C. Vroom and Yetton
  • D. House and Mitchell
Correct: A
James MacGregor Burns introduced the concept, later developed by Bernard Bass.

Q69. Under the Vroom-Yetton-Jago normative model, which decision style gives the leader sole decision authority without consulting the group? 1.00

  • A. AII
  • B. CI
  • C. AI
  • D. GII
Correct: C
AI (Autocratic I) means the leader decides alone using available information.

Q70. In Maslow's hierarchy, which need immediately follows esteem needs as one moves up the pyramid? 1.00

  • A. Safety needs
  • B. Self-actualisation
  • C. Social needs
  • D. Physiological needs
Correct: B
Self-actualisation is the top-level need above esteem in Maslow's hierarchy.

Q71. Under the RBI priority sector lending framework, the overall PSL target for domestic scheduled commercial banks (excluding RRBs and SFBs) is 40% of ANBC. Which component within this overall target is specified as a sub-target for micro enterprises? 1.00

  • A. 7.5% of ANBC
  • B. 8% of ANBC
  • C. 9% of ANBC
  • D. 10% of ANBC
Correct: A
The micro enterprise sub-target is 7.5% of ANBC, within the 40% overall PSL target.

Q72. For domestic scheduled commercial banks, the PSL sub-target for lending to the weaker sections is fixed at what percentage of ANBC? 1.00

  • A. 10%
  • B. 12%
  • C. 15%
  • D. 18%
Correct: B
The weaker sections sub-target is 12% of ANBC for domestic scheduled commercial banks.

Q73. Under RBI PSL guidelines, the target for lending to the agriculture sector is 18% of ANBC, of which the target for small and marginal farmers is: 1.00

  • A. 8% of ANBC
  • B. 9.5% of ANBC
  • C. 10% of ANBC
  • D. 12% of ANBC
Correct: C
The small and marginal farmer sub-target is 10% of ANBC within the 18% agriculture target.

Q74. What is the PSL target applicable to Urban Co-operative Banks (UCBs) as a percentage of their adjusted net bank credit? 1.00

  • A. 40%
  • B. 50%
  • C. 60%
  • D. 75%
Correct: D
UCBs are required to achieve a PSL target of 75% of ANBC, with a phased glide path.

Q75. For Small Finance Banks (SFBs), RBI prescribes a PSL target of 75% of ANBC. Within this, the minimum share required for the agriculture sector is: 1.00

  • A. 18% of ANBC
  • B. 25% of ANBC
  • C. 40% of ANBC
  • D. 50% of ANBC
Correct: B
SFBs must allocate at least 25% of ANBC to agriculture within their 75% PSL target.

Q76. Under the PSL framework, which of the following is NOT counted as a component of 'weaker sections'? 1.00

  • A. Small and marginal farmers
  • B. Scheduled Castes and Scheduled Tribes
  • C. Micro enterprises
  • D. Medium enterprises
Correct: D
Medium enterprises are not part of the weaker sections category; micro enterprises are.

Q77. For Foreign Banks with 20 or more branches in India, the PSL target is 40% of ANBC. What is the sub-target for micro enterprises applicable to them? 1.00

  • A. 7.5% of ANBC
  • B. 8% of ANBC
  • C. 9% of ANBC
  • D. 10% of ANBC
Correct: A
Foreign banks with 20+ branches follow the same 7.5% micro enterprise sub-target as domestic banks.

Q78. In respect of the PSL target for the renewable energy sector under the 'others' category, RBI has prescribed lending limits up to what amount per borrower for solar and other renewable energy projects? 1.00

  • A. Rs 10 lakh
  • B. Rs 15 lakh
  • C. Rs 20 lakh
  • D. Rs 30 lakh
Correct: D
Renewable energy lending up to Rs 30 lakh per borrower qualifies under PSL for solar and other renewable energy.

Q79. The PSL target for Regional Rural Banks (RRBs) is specified at 75% of outstanding advances. Which of the following sub-targets applies to RRBs for the agriculture sector? 1.00

  • A. 18% of ANBC
  • B. 25% of ANBC
  • C. 40% of ANBC
  • D. 50% of ANBC
Correct: B
RRBs must lend at least 25% of ANBC to agriculture within their 75% PSL target.

Q80. Under the PSL guidelines, lending to which of the following categories is classified under the 'others' sector and qualifies for PSL? 1.00

  • A. Housing loans to individuals up to Rs 35 lakh in Tier-II cities
  • B. Loans to large corporate houses
  • C. Loans for purchase of luxury cars
  • D. Advances to non-banking financial companies for on-lending to large industries
Correct: A
Housing loans up to Rs 35 lakh in Tier-II cities (with dwelling cost up to Rs 45 lakh) qualify under the 'others' PSL category.