🌾 INDIAN BANKING RADAR (IBR) - IBPS PO MAINS — BANKING INTELLIGENCE MINI MOCK

🔥 PLATINUM SERIES 2.0 | VOL. 210

📅 SUNDAY, 25 OCTOBER 2026

🎯 TARGET EXAMINATIONS

IBPS PO Mains • SBI PO • Other Banking Examinations

⏱️ QUESTIONS: 20

🎯 MAXIMUM MARKS: 20

⏳ SUGGESTED TIME: 15 MINUTES

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📚 SECTION 1: BANKING & FINANCIAL AWARENESS

Q1. Under the DICGC deposit insurance scheme, what is the maximum insurance coverage available to a depositor for eligible deposits held in the same capacity and same right across all branches of the same insured bank?

A. ₹10 lakh, including principal and interest

B. ₹2 lakh, excluding interest

C. ₹5 lakh, including principal and interest

D. ₹1 lakh, excluding interest

E. The entire deposit balance without any limit

Q2. What is the primary purpose of the Trade Receivables Discounting System (TReDS)?

A. To facilitate financing of trade receivables of MSMEs through a digital platform

B. To insure bank deposits

C. To regulate foreign exchange transactions

D. To refinance housing loans

E. To provide long-term infrastructure finance

Q3. The Liquidity Coverage Ratio (LCR) is primarily intended to ensure that a bank maintains sufficient high-quality liquid assets to meet its net cash outflows over which period under a stress scenario?

A. 7 calendar days

B. 14 calendar days

C. 90 calendar days

D. 180 calendar days

E. 30 calendar days

Q4. What does the Cheque Truncation System (CTS) primarily facilitate?

A. Conversion of savings accounts into current accounts

B. Clearing of cheques using electronic images instead of physical movement of the instruments

C. Electronic transfer of government securities

D. Automatic classification of advances as NPAs

E. Settlement of foreign currency derivatives

Q5. The Marginal Cost of Funds-Based Lending Rate (MCLR) framework was introduced by the RBI primarily to improve the:

A. Deposit insurance mechanism

B. Recovery of agricultural advances

C. Capital adequacy of cooperative banks

D. Transmission of changes in policy rates to lending rates

E. Regulation of payment aggregators

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🏦 SECTION 2: CREDIT, PAYMENTS & REGULATORY KNOWLEDGE

Q6. Under the Pradhan Mantri Mudra Yojana (PMMY), the Shishu category traditionally covers loans of:

A. Above ₹50,000 and up to ₹5 lakh

B. Up to ₹50,000

C. Above ₹5 lakh and up to ₹10 lakh

D. Above ₹10 lakh and up to ₹20 lakh

E. Above ₹20 lakh and up to ₹50 lakh

Q7. Which statement correctly distinguishes RTGS from NEFT?

A. RTGS is exclusively for international remittances.

B. RTGS is available only during branch working hours.

C. NEFT is exclusively for transactions above ₹2 lakh.

D. RTGS settles transactions individually in real time on a gross basis.

E. NEFT does not permit electronic fund transfers between banks.

Q8. A borrower diverts loan funds sanctioned for purchasing machinery to an unrelated business activity without the lender's approval. This is primarily an example of:

A. Diversion of funds

B. Normal working capital management

C. Loan restructuring

D. Consortium lending

E. Credit enhancement

Q9. Which organisation operates the Unified Payments Interface (UPI) in India?

A. Securities and Exchange Board of India

B. Insurance Regulatory and Development Authority of India

C. National Payments Corporation of India

D. National Bank for Agriculture and Rural Development

E. Deposit Insurance and Credit Guarantee Corporation

Q10. Under Section 13(2) of the SARFAESI Act, 2002, a secured creditor generally gives a borrower a notice allowing how many days to discharge the secured liability before proceeding to the next enforcement stage?

A. 15 days

B. 30 days

C. 45 days

D. 90 days

E. 60 days

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📊 SECTION 3: BANK FINANCIAL ANALYSIS & COMPLIANCE

Q11. A bank branch reports current assets of ₹12 crore and current liabilities of ₹8 crore. What is its current ratio?

A. 2.0:1

B. 0.67:1

C. 2.5:1

D. 1.5:1

E. 1.0:1

Q12. The cost-to-income ratio of a bank is generally calculated as:

A. Net profit ÷ total deposits × 100

B. Total advances ÷ total deposits × 100

C. Operating expenses ÷ operating income × 100

D. Interest income ÷ interest expenses × 100

E. Gross NPAs ÷ gross advances × 100

Q13. In banking, Customer Due Diligence (CDD) is an important component of:

A. Know Your Customer (KYC) and anti-money-laundering compliance

B. Treasury investment valuation

C. Statutory liquidity management

D. Agricultural crop insurance

E. Capital budgeting

Q14. A bank finances an MSME's unpaid invoices raised on a corporate buyer through an electronic receivables-financing platform. This is best described as:

A. Mortgage financing

B. Reverse repo lending

C. Term lending for capital expenditure

D. Equity financing

E. Invoice financing

Q15. Section 138 of the Negotiable Instruments Act, 1881, primarily deals with:

A. Deposit insurance claims

B. Dishonour of a cheque for insufficiency of funds or exceeding the arrangement

C. Regulation of government securities

D. Foreign exchange settlement

E. Classification of agricultural advances

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💡 SECTION 4: BANKING OPERATIONS & NUMERICAL INTELLIGENCE

Q16. A bank has current account deposits of ₹120 crore, savings account deposits of ₹180 crore and total deposits of ₹1,000 crore. What is its CASA ratio?

A. 18%

B. 12%

C. 20%

D. 25%

E. 30%

Q17. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) primarily supports:

A. Calculation of banks' CRR requirements

B. Registration of security interests and prevention of fraudulent multiple financing against the same assets

C. Insurance of bank deposits

D. Settlement of UPI transactions

E. Determination of monetary policy rates

Q18. Which legislation provides the statutory framework under which the RBI regulates payment systems in India?

A. Companies Act, 2013

B. Negotiable Instruments Act, 1881, exclusively

C. Banking Regulation Act, 1949, exclusively

D. Payment and Settlement Systems Act, 2007

E. Insurance Act, 1938

Q19. A company has total debt of ₹7.5 crore and shareholders' equity of ₹2.5 crore. What is its debt-to-equity ratio?

A. 1:3

B. 2:1

C. 3:1

D. 1:1

E. 4:1

Q20. Under the standard RBI prudential framework for a term loan, an account is generally classified as a non-performing asset (NPA) when interest or principal remains overdue for more than:

A. 90 days

B. 30 days

C. 60 days

D. 180 days

E. 365 days

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✅ ANSWER KEY

Q1. C

Q2. A

Q3. E

Q4. B

Q5. D

Q6. B

Q7. D

Q8. A

Q9. C

Q10. E

Q11. D

Q12. C

Q13. A

Q14. E

Q15. B

Q16. E

Q17. B

Q18. D

Q19. C

Q20. A

📊 ANSWER DISTRIBUTION

A = 4 | B = 4 | C = 4 | D = 4 | E = 4

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📖 EXPLANATIONS & LEARNING POINTS

Q1. DICGC Deposit Insurance

The maximum coverage is ₹5 lakh per depositor per insured bank for eligible deposits held in the same capacity and same right. Principal and accrued interest are included within the limit. Eligible deposits across branches of the same bank are aggregated.

Q2. TReDS

TReDS facilitates financing of MSME trade receivables through a digital platform, helping eligible MSMEs obtain funds against invoices accepted by buyers.

Q3. LCR

The Liquidity Coverage Ratio requires banks to maintain sufficient High-Quality Liquid Assets (HQLA) to cover projected net cash outflows over a 30-calendar-day stress period.

Q4. CTS

The Cheque Truncation System processes cheques using electronic images and associated data, reducing physical movement of cheques and speeding up clearing.

Q5. MCLR

MCLR is a benchmark lending-rate framework intended to improve the transmission of monetary policy changes to lending rates, subject to applicable RBI rules and exceptions.

Q6. PMMY Shishu

The Shishu category traditionally covers loans up to ₹50,000. The other traditional categories include Kishor and Tarun. The scheme also provides for Tarun Plus for eligible borrowers who have successfully repaid previous Tarun loans.

Q7. RTGS vs NEFT

RTGS settles transactions individually in real time on a gross basis. NEFT processes transfers through a deferred net settlement mechanism in batches. Both systems are available round the clock.

Q8. Diversion of Funds

Using borrowed funds for a purpose other than the sanctioned purpose may constitute diversion of funds. The lender must examine the facts and applicable regulatory instructions before determining the appropriate classification.

Q9. UPI

The National Payments Corporation of India (NPCI) operates UPI, which facilitates instant bank-to-bank payments through a unified payment interface.

Q10. SARFAESI Act

Section 13(2) generally requires a 60-day demand notice before a secured creditor proceeds with enforcement measures under Section 13(4), subject to the Act's applicability and requirements.

Q11. Current Ratio

Current ratio = Current assets ÷ Current liabilities

= ₹12 crore ÷ ₹8 crore

= 1.5:1.

Q12. Cost-to-Income Ratio

Cost-to-income ratio = Operating expenses ÷ Operating income × 100. It indicates the proportion of operating income consumed by operating expenses.

Q13. CDD and KYC

Customer Due Diligence is a core component of KYC and anti-money-laundering controls. It helps establish customer identity, understand the purpose of the relationship and assess relevant risks.

Q14. Invoice Financing

Invoice financing enables a business to obtain funding against eligible unpaid invoices. TReDS is one mechanism through which eligible MSME receivables can be financed.

Q15. Section 138 of the Negotiable Instruments Act

Section 138 addresses cheque dishonour for insufficiency of funds or exceeding the arrangement with the bank, subject to statutory conditions, including applicable notice and payment timelines.

Q16. CASA Ratio

CASA deposits = Current account deposits + Savings account deposits

= ₹120 crore + ₹180 crore = ₹300 crore.

CASA ratio = ₹300 crore ÷ ₹1,000 crore × 100

= 30%.

Q17. CERSAI

CERSAI maintains a central registry of specified security interests and supports checks against fraudulent multiple financing involving the same assets.

Q18. Payment and Settlement Systems Act, 2007

This Act provides the statutory framework for the RBI's regulation and supervision of payment systems in India.

Q19. Debt-to-Equity Ratio

Debt-to-equity ratio = Total debt ÷ Shareholders' equity

= ₹7.5 crore ÷ ₹2.5 crore

= 3:1.

Q20. Term-Loan NPA Classification

Under the standard prudential norm for term loans, an account generally becomes an NPA when interest or principal remains overdue for more than 90 days. Certain categories of advances, including specified agricultural advances, are subject to distinct applicable norms.

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🎯 FINAL REVISION CAPSULE

DICGC: ₹5 lakh per depositor per insured bank, subject to the same-capacity-and-same-right rule.

TReDS: Financing MSME trade receivables.

LCR: 30-day stress period.

CTS: Electronic cheque-image clearing.

MCLR: Lending-rate benchmark and monetary-policy transmission.

PMMY Shishu: Traditionally, loans up to ₹50,000.

RTGS: Real-time gross settlement.

UPI: Operated by NPCI.

SARFAESI Section 13(2): Generally, a 60-day demand notice.

Current Ratio: Current assets ÷ current liabilities.

Cost-to-Income Ratio: Operating expenses ÷ operating income × 100.

CASA Ratio: Current and savings deposits ÷ total deposits × 100.

CERSAI: Central registry of specified security interests.

Section 138: Certain cases of cheque dishonour.

Term-Loan NPA Norm: Generally, more than 90 days overdue.

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📢 YOUR BANKING EXAM SUCCESS STARTS HERE!

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