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

🔥 PLATINUM SERIES 2.0 | VOL. 218

📅 MONDAY, 2 NOVEMBER 2026

🎯 TARGET EXAMINATIONS

IBPS PO Mains • SBI PO • Other Banking Examinations

📝 20 QUESTIONS | 20 MARKS | 15 MINUTES

📊 Banking Operations • Digital Payments • Treasury • Credit Appraisal • Compliance • Risk Management

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Q1. A customer issues a cheque bearing two parallel transverse lines across its face, without specifying any particular banker. What is the primary effect of this general crossing:

A. The cheque becomes payable exclusively in cash to the named payee

B. The cheque becomes invalid unless countersigned by the drawee bank

C. The cheque is ordinarily payable only through a banker, subject to applicable law

D. The cheque must be deposited exclusively into the payee’s savings account

E. The cheque automatically becomes a non-transferable instrument

Q2. Under the Positive Pay System (PPS), a bank receives a cheque for clearing and has access to the cheque particulars previously submitted by the drawer. What is the primary purpose of this facility:

A. To guarantee payment irrespective of the account balance

B. To verify key cheque particulars and help detect alterations or discrepancies

C. To eliminate the need for signature verification

D. To replace the cheque-clearing system with NEFT

E. To waive the requirement of sufficient funds in the account

Q3. An individual maintains deposits totalling ₹7.60 lakh across savings and fixed-deposit accounts in different branches of the same DICGC-insured bank, held in the same right and capacity. What is the maximum deposit insurance cover under the standard DICGC limit:

A. ₹7.60 lakh, because the deposits are held in different branches

B. ₹5 lakh for each account separately

C. ₹10 lakh, including accrued interest

D. ₹5 lakh in aggregate, including eligible principal and interest

E. ₹2.50 lakh, irrespective of the number of accounts

Q4. A corporate customer needs to transfer funds electronically on a public holiday. Which statement about NEFT is correct:

A. NEFT operates only on working days

B. NEFT is available only during bank branch hours

C. NEFT transactions require a minimum remittance of ₹2 lakh

D. NEFT is available 24×7, but only for transactions below ₹2 lakh

E. NEFT operates 24×7 throughout the year, subject to applicable system and bank procedures

Q5. A bank customer wants to remit ₹1.50 lakh through RTGS. Which statement is correct under the standard RBI framework:

A. The amount is below the usual minimum RTGS remittance of ₹2 lakh

B. The amount is eligible because RTGS has no minimum limit

C. RTGS is available only on working days

D. RTGS is available exclusively for interbank transactions

E. The remittance is prohibited because RTGS has a maximum limit of ₹1 lakh

Q6. A commercial bank acquires eligible financial instruments with the intention of short-term resale and profiting from short-term price movements. Under the RBI’s investment portfolio framework, which classification is most directly associated with this purpose:

A. Held to Maturity (HTM)

B. Available for Sale (AFS) in every case

C. Non-performing asset (NPA)

D. Statutory Liquidity Ratio (SLR) reserve

E. Held for Trading (HFT), a subcategory of FVTPL

Q7. A borrower repays the entire outstanding principal of a term loan before the contractual maturity date. This is best described as:

A. Loan rescheduling

B. Debt securitisation

C. Loan prepayment

D. Credit enhancement

E. Loan syndication

Q8. A loan applicant earns a high monthly salary but already has substantial EMI commitments, variable additional income and limited monthly surplus. Which approach provides the soundest basis for assessing repayment capacity:

A. Sanction the loan solely on the basis of gross salary

B. Assess verified income, existing obligations, income stability and available repayment surplus

C. Ignore existing EMIs if the applicant has a high credit score

D. Approve the maximum eligible loan because the applicant is salaried

E. Assess only the value of collateral offered

Q9. A financial institution transfers a pool of eligible loan receivables to a special-purpose entity, which raises funds by issuing securities supported by cash flows from the underlying pool. This process is known as:

A. Loan evergreening

B. Factoring of trade receivables in every case

C. Securitisation

D. Credit rationing

E. Debt-equity conversion

Q10. A customer receives a call from someone claiming to be a bank officer. The caller says a UPI payment can be reversed only if the customer shares an OTP. What is the safest response:

A. Share the OTP if the caller knows the customer’s account number

B. Share the OTP but change the UPI PIN immediately afterwards

C. Install the application recommended by the caller

D. Approve a collect request to initiate the refund

E. Do not share the OTP; independently contact the bank through an authenticated channel and report the incident

Q11. A bank identifies a transaction of modest value that appears to lack an economic rationale and raises reasonable suspicion of money laundering. Which statement is correct under the PMLA reporting framework:

A. An STR is required only if the transaction exceeds ₹10 lakh

B. An STR is required only when a cash deposit is involved

C. A suspicious transaction can be ignored if the customer has a satisfactory credit score

D. A Suspicious Transaction Report (STR) may be required irrespective of the amount, subject to applicable reporting requirements

E. Every STR automatically establishes the customer’s guilt

Q12. An individual who is resident in India for FEMA purposes receives domestic income and wants to maintain an ordinary personal deposit account. Which option is generally appropriate, subject to account-opening requirements:

A. NRE account, because all domestic income must be credited to it

B. A resident savings account

C. FCNR(B) account, because it is the standard account for resident domestic income

D. NRO account, which is mandatory for every resident individual

E. A foreign-currency account that is exempt from all KYC requirements

Q13. A farmer requires a revolving credit facility for eligible crop cultivation expenses and specified allied agricultural activities. Which banking product is designed to meet these requirements, subject to applicable eligibility norms:

A. Export Packing Credit

B. Letter of Credit

C. Cash Management Bill

D. Kisan Credit Card (KCC)

E. Certificate of Deposit

Q14. A bank considers a loan to a micro enterprise for possible classification under Priority Sector Lending (PSL). Which approach is correct:

A. Verify the borrower, activity, loan purpose and applicable RBI PSL eligibility criteria

B. Classify every loan below ₹10 lakh as PSL automatically

C. Classify every loan to a business as PSL, regardless of its activity

D. Treat collateral-free status as sufficient proof of PSL eligibility

E. Classify the loan as PSL only if the borrower is an individual rather than an enterprise

Q15. A deposit product advertises a nominal annual interest rate of 12%, compounded monthly. Ignoring fees, taxes and other adjustments, what is its approximate effective annual interest rate:

A. 12.00%

B. 12.36%

C. 12.68%

D. 13.00%

E. 14.40%

Q16. An Indian importer must pay US$100,000 after three months. To reduce uncertainty about the rupee cost of the future payment, the importer enters into an eligible forward exchange contract with a bank. The primary purpose is to:

A. Eliminate the importer’s obligation to pay the foreign supplier

B. Guarantee that the spot exchange rate will move favourably

C. Convert the import transaction into a domestic rupee transaction

D. Hedge foreign-exchange risk by fixing the contractual exchange rate for the specified future settlement

E. Eliminate all credit, settlement and operational risks associated with the transaction

Q17. In a bank branch, the same employee can create a new beneficiary, initiate a funds transfer and approve that transfer without independent review. Which control weakness is most evident:

A. Excessive diversification

B. Failure of segregation of duties

C. Excessive capital adequacy

D. Over-collateralisation

E. Excessive liquidity coverage

Q18. A customer discovers an unauthorised electronic debit after having shared confidential credentials with another person. The customer reports the transaction to the bank. Which statement is the most appropriate:

A. The bank must refund the entire amount in every case

B. The customer must bear the entire loss in every case

C. The customer’s liability is determined solely by the amount involved

D. Reporting the transaction automatically proves that the bank was negligent

E. Liability must be assessed under applicable RBI directions, considering the circumstances, customer negligence and reporting timeline

Q19. Under a documentary letter of credit, the beneficiary presents documents that comply with the credit’s stipulated terms and applicable documentary rules. What is the issuing bank’s primary obligation:

A. Refuse payment until the applicant has physically inspected the goods

B. Pay only if the applicant confirms that the goods are commercially satisfactory

C. Honour a complying presentation in accordance with the credit’s terms and applicable rules

D. Ignore discrepancies because documentary examination is unnecessary

E. Guarantee the actual quality of the goods irrespective of the documents

Q20. A bank wants to improve financial inclusion in remote villages where customers have limited access to branches and varying levels of digital literacy. Which strategy is most comprehensive:

A. Offer digital accounts without customer support or financial education

B. Open accounts but discontinue assisted banking services

C. Focus exclusively on high-value customers with digital access

D. Combine suitable basic banking accounts, accessible delivery channels, financial literacy and customer support

E. Restrict banking services to customers who own smartphones

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✅ ANSWER KEY

Q1.C

Q2.B

Q3.D

Q4.E

Q5.A

Q6.E

Q7.C

Q8.B

Q9.C

Q10.E

Q11.D

Q12.B

Q13.D

Q14.A

Q15.C

Q16.D

Q17.B

Q18.E

Q19.C

Q20.D

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🎯 QUICK REVISION CAPSULE

1. Cheque Operations & Deposit Insurance

- General crossing: ordinarily payable through a banker.

- Positive Pay: verifies specified cheque particulars and helps prevent cheque fraud.

- DICGC: standard cover of ₹5 lakh per depositor per insured bank, in the same right and capacity, including principal and interest.

2. Digital Payments

- NEFT: 24×7 throughout the year.

- RTGS: standard minimum remittance of ₹2 lakh; no RBI-prescribed maximum.

- Never disclose OTPs or UPI PINs to callers claiming to process refunds.

3. Treasury & Credit

- HFT: subcategory of FVTPL under the applicable RBI investment framework.

- Prepayment: repayment before scheduled maturity.

- Credit appraisal: repayment capacity, verified income and existing obligations.

- Forward contract: manages specified foreign-exchange exposure.

4. Compliance & Internal Controls

- STR: suspicious transactions may be reportable irrespective of amount.

- Segregation of duties: prevents concentration of incompatible responsibilities.

- Unauthorised electronic transactions: assess liability under applicable RBI directions and case-specific facts.

5. Financial Products & Inclusion

- KCC: credit for eligible agricultural and allied activities.

- PSL: classification depends on applicable RBI eligibility criteria.

- Documentary credit: obligation depends on the credit terms and compliance of the presentation.

- Financial inclusion: access, usability, literacy and support.

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🔥 IBR PLATINUM CHALLENGE

Attempt all 20 questions in 15 minutes without referring to the answer key.

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Editorial disclaimer: This mock is intended for educational and examination practice. For operational or compliance decisions, consult the latest official RBI directions, DICGC guidance and other applicable regulatory instructions.