INDIAN BANKING RADAR (IBR) - IBPS AFO MAINS INTELLIGENCE MOCK

🔥 PLATINUM SERIES 2.0 | VOL. 195

📅 11 OCTOBER 2026 | SUNDAY

🎯 FOCUS: RBI Monetary Policy • Agricultural Credit • Crop Science • Agricultural Economics • Climate-Smart Agriculture

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🧠 PRACTICE MOCK — 20 MCQs

Q1. Following the RBI Monetary Policy Committee's October 2026 decision, what is the policy repo rate:

A. 5.25%

B. 5.50%

C. 5.75%

D. 5.00%

E. 6.00%

Q2. What is the Standing Deposit Facility (SDF) rate following the October 2026 RBI policy decision:

A. 5.00%

B. 5.50%

C. 5.75%

D. 5.25%

E. 6.00%

Q3. From the reporting fortnight beginning 16 October 2026, what is the minimum daily CRR maintenance requirement as a percentage of the prescribed CRR:

A. 80%

B. 85%

C. 90%

D. 95%

E. 99%

Q4. What policy stance did the RBI announce following its October 2026 monetary policy review:

A. Accommodative

B. Neutral

C. Calibrated tightening

D. Withdrawal of accommodation

E. Unchanged accommodative

Q5. Under RBI Priority Sector Lending directions, what is the agriculture lending target for domestic commercial banks, excluding RRBs and Small Finance Banks:

A. 10% of ANBC

B. 12% of ANBC

C. 18% of ANBC or CEOBSE, whichever is higher

D. 7.5% of ANBC

E. 40% of ANBC

Q6. What is the prescribed priority-sector sub-target for lending to Small and Marginal Farmers (SMFs), expressed as a percentage of ANBC or CEOBSE, whichever is higher:

A. 10%

B. 7.5%

C. 12%

D. 15%

E. 18%

Q7. Which institution prepares Potential Linked Credit Plans (PLPs) to assess credit potential at the district level:

A. SEBI

B. SIDBI

C. IRDAI

D. NABARD

E. EXIM Bank

Q8. A farmer seeks finance for a water-intensive crop in an area with uncertain irrigation. What should an Agriculture Field Officer prioritise during appraisal:

A. Approve the loan solely on the basis of landholding

B. Assess irrigation reliability, crop suitability, cultivation costs and repayment capacity

C. Assume normal yields regardless of water availability

D. Ignore the proposed cropping pattern

E. Increase the loan amount without assessing risk

Q9. Which pathogen causes late blight of potato:

A. Alternaria solani

B. Fusarium oxysporum

C. Rhizoctonia solani

D. Xanthomonas campestris

E. Phytophthora infestans

Q10. Which element is present at the centre of the chlorophyll molecule:

A. Calcium

B. Sulphur

C. Magnesium

D. Zinc

E. Boron

Q11. Which bacterium forms a symbiotic nitrogen-fixing association with leguminous crops:

A. Rhizobium

B. Alternaria

C. Phytophthora

D. Xanthomonas campestris

E. Puccinia

Q12. Which irrigation method delivers water near the plant root zone and can improve water-use efficiency when properly designed and managed:

A. Uncontrolled flooding

B. Wild flooding

C. Continuous field submergence for every crop

D. Drip irrigation

E. Unlined field-channel irrigation

Q13. A soil sample has a pH of 5.0. How should the soil reaction be classified:

A. Strongly alkaline

B. Acidic

C. Neutral

D. Sodic solely on the basis of pH

E. Saline solely on the basis of pH

Q14. What is the principal purpose of the Soil Health Card scheme:

A. Guaranteeing Minimum Support Price (MSP)

B. Providing automatic crop insurance

C. Replacing soil testing laboratories

D. Certifying seed purity

E. Providing soil nutrient status and fertiliser recommendations

Q15. What is the primary objective of the electronic National Agriculture Market (e-NAM):

A. Replacing agricultural credit institutions

B. Providing fertilisers free of cost

C. Improving agricultural market integration and transparency through electronic trading

D. Guaranteeing identical prices in every market

E. Regulating agricultural university admissions

Q16. What is the correct sequence in the seed multiplication chain for notified varieties:

A. Breeder seed → Foundation seed → Certified seed

B. Certified seed → Breeder seed → Foundation seed

C. Foundation seed → Breeder seed → Certified seed

D. Certified seed → Foundation seed → Breeder seed

E. Foundation seed → Certified seed → Breeder seed

Q17. Which body recommends Minimum Support Prices (MSPs) for mandated agricultural crops to the Government of India:

A. National Dairy Development Board

B. Food Corporation of India

C. Agricultural and Processed Food Products Export Development Authority

D. Commission for Agricultural Costs and Prices

E. Directorate of Economics and Statistics

Q18. What is the principal purpose of the Pradhan Mantri Fasal Bima Yojana (PMFBY):

A. Guaranteeing a fixed profit to every farmer

B. Providing insurance against specified crop-loss risks, subject to scheme provisions

C. Replacing all agricultural loans with grants

D. Eliminating every production and market risk

E. Guaranteeing identical compensation to all insured farmers

Q19. Following a localised crop failure, a DCCB observes rising repayment stress among borrowers. What is the most appropriate initial response by the bank:

A. Stop all agricultural lending permanently

B. Classify every affected loan as a loss immediately

C. Ignore the repayment stress until the end of the year

D. Renew every overdue loan without assessment

E. Assess crop-loss evidence, borrower cash flows, repayment capacity and applicable regulatory provisions

Q20. An agricultural project generates ₹30,000 in net cash available for debt servicing annually. Its annual principal and interest obligations total ₹25,000. What is its Debt Service Coverage Ratio (DSCR):

A. 0.80

B. 1.00

C. 1.20

D. 1.50

E. 2.00

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✅ ANSWER KEY

Q1.B

Q2.D

Q3.E

Q4.C

Q5.C

Q6.A

Q7.D

Q8.B

Q9.E

Q10.C

Q11.A

Q12.D

Q13.B

Q14.E

Q15.C

Q16.A

Q17.D

Q18.B

Q19.E

Q20.C

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📌 QUICK REVISION — BANKING & AGRICULTURE

1. RBI Monetary Policy — October 2026

Repo Rate: 5.50%

Standing Deposit Facility (SDF): 5.25%

Marginal Standing Facility (MSF): 5.75%

Bank Rate: 5.75%

Policy stance: Calibrated tightening

Minimum daily CRR maintenance: 99% of the prescribed CRR, effective from the reporting fortnight beginning 16 October 2026.

Exam alert: The 99% requirement concerns daily maintenance of the prescribed CRR; it is not a change in the headline CRR ratio.

2. Priority Sector Lending — Agriculture

Agriculture target for applicable domestic commercial banks: 18% of ANBC or CEOBSE, whichever is higher.

Small and Marginal Farmers (SMFs): 10% sub-target.

Non-Corporate Farmers (NCFs): 14% sub-target within the applicable agriculture target.

NABARD prepares district-level Potential Linked Credit Plans (PLPs).

Exam alert: Apply the relevant category-specific RBI directions when interpreting PSL targets.

3. Agricultural Credit Appraisal — AFO Perspective

Before recommending a crop loan, assess:

Cropping pattern and suitability of the proposed crop.

Irrigation availability and reliability.

Scale of Finance and realistic cultivation costs.

Existing liabilities and repayment capacity.

Crop insurance eligibility and applicable scheme provisions.

Evidence of crop loss and any relief or restructuring provisions that may apply.

4. High-Value Agricultural Facts

Potato late blight: Phytophthora infestans.

Central element in chlorophyll: Magnesium.

Symbiotic nitrogen fixation in legumes: Rhizobium.

Water-efficient root-zone irrigation: Drip irrigation.

Seed chain: Breeder → Foundation → Certified.

MSP recommendations: Commission for Agricultural Costs and Prices (CACP).

Soil Health Card: Soil nutrient status and fertiliser guidance.

e-NAM: Electronic agricultural market integration and greater transparency.

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✍️ DESCRIPTIVE PRACTICE — IBPS AFO MAINS

Question: Explain how climate-resilient agriculture and institutional credit can improve farm sustainability and reduce agricultural credit risk. Discuss the role of an Agriculture Field Officer.

Suggested coverage: Crop diversification, efficient irrigation, soil health, weather-related risks, scientific credit appraisal, crop insurance, repayment capacity and post-disbursement monitoring.

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