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

PLATINUM SERIES 2.0 | VOL. 222

Friday, 6 November 2026

TARGET EXAMINATIONS

IBPS PO Mains • SBI PO • Other Banking Examinations

20 QUESTIONS | 20 MARKS | 15 MINUTES

Topics: CRR, SLR, Monetary Policy, Trade Finance, TReDS, KYC, CKYCR, CERSAI, DICGC, RTGS, NEFT, IFSC, NACH, FEMA, FCNR(B), AML, RBI Retail Direct, UPI AutoPay and CTS.

SECTION I — ADVANCED BANKING INTELLIGENCE MCQs

Q1. A bank has Net Demand and Time Liabilities (NDTL) of ₹5,000 crore. If the applicable CRR is assumed to be 4%, what amount must the bank maintain as CRR:

A. ₹150 crore

B. ₹175 crore

C. ₹200 crore

D. ₹225 crore

E. ₹250 crore

Q2. Which combination represents eligible assets for maintaining SLR, subject to RBI-prescribed conditions:

A. Cash, gold and unencumbered investments in approved securities

B. Only cash balances maintained with RBI

C. Only priority-sector loans

D. Fixed assets and private-company shares

E. All investments irrespective of eligibility

Q3. Under a repo transaction, which statement best describes the arrangement from the perspective of a bank borrowing funds from RBI:

A. Permanent sale of securities without repurchase.

B. Unsecured borrowing without collateral.

C. Purchase of foreign currency against rupees.

D. Sale of eligible securities with an agreement to repurchase them at a specified future date and price.

E. Transfer of bank equity capital to RBI.

Q4. What is the primary purpose of the Trade Receivables Discounting System (TReDS):

A. Providing long-term project finance to large corporates.

B. Financing MSME trade receivables through financiers, generally without recourse to the MSME seller.

C. Guaranteeing every invoice payment by the Government.

D. Financing agricultural crop loans exclusively.

E. Replacing invoices and supporting trade documents.

Q5. Which principle governs a documentary Letter of Credit (LC):

A. The issuing bank must physically inspect goods.

B. Payment depends exclusively on the buyer's approval.

C. An underlying contract dispute automatically invalidates the LC.

D. The issuing bank can disregard complying documents at the applicant's request.

E. Payment is governed by the LC terms and presentation of complying documents.

Q6. Under RBI's KYC framework, what is the periodic KYC updation frequency for a medium-risk customer:

A. Every 2 years

B. Every 5 years

C. Every 8 years

D. Every 10 years

E. Only when the account is closed

Q7. What is the principal purpose of the unique KYC identifier issued through CKYCR:

A. Facilitating retrieval and sharing of KYC records, subject to applicable consent and regulatory requirements.

B. Replacing the customer's bank account number.

C. Functioning as a universal credit score.

D. Serving as the customer's IFSC.

E. Replacing PAN for all tax purposes.

Q8. What is the principal function of CERSAI:

A. Regulating stock exchanges.

B. Providing deposit insurance.

C. Operating the country's RTGS system.

D. Registering security interests and maintaining records of secured transactions.

E. Issuing currency notes.

Q9. What is the maximum DICGC deposit insurance coverage per depositor in the same right and same capacity in the same insured bank, including principal and interest:

A. ₹1 lakh

B. ₹5 lakh

C. ₹10 lakh

D. ₹2 lakh

E. ₹15 lakh

Q10. Which institution is generally excluded from DICGC deposit insurance coverage:

A. Regional Rural Banks

B. Foreign banks operating in India

C. Local Area Banks

D. Commercial banks

E. Primary cooperative societies

Q11. What is the minimum transaction amount for RTGS in India:

A. ₹2 lakh

B. ₹1 lakh

C. ₹50,000

D. ₹10 lakh

E. No minimum amount

Q12. Which statement correctly describes NEFT:

A. Transactions are settled only once at the end of the day.

B. It operates exclusively through physical clearing houses.

C. Transactions are processed in half-hourly batches and the system is available 24×7.

D. It is available only above ₹2 lakh.

E. It is exclusively used for international remittances.

Q13. Which statement correctly describes the structure of IFSC SBIN0001234:

A. First five characters identify the branch.

B. First three characters identify the bank.

C. First four characters identify the branch.

D. First four characters identify the bank, the fifth is zero and the last six identify the branch.

E. All eleven characters represent the account number.

Q14. What is the primary function of NPCI's NACH system:

A. Real-time gross settlement of high-value transactions.

B. Processing bulk and recurring payments such as salaries, pensions, dividends and utility collections.

C. Issuing government securities.

D. Exclusively facilitating international foreign exchange transactions.

E. Providing deposit insurance.

Q15. Which of the following is generally a capital account transaction under FEMA:

A. Payment for imported goods.

B. Payment of interest on a foreign loan.

C. Remittance for overseas travel.

D. Payment of insurance premiums for permitted services.

E. Acquisition or transfer of a foreign asset that alters specified overseas assets or liabilities of a person resident in India.

Q16. Which statement correctly describes an FCNR(B) account:

A. A term deposit maintained by an eligible non-resident in a permitted foreign currency.

B. A rupee savings account exclusively for resident individuals.

C. A current account exclusively for foreign companies.

D. A government savings certificate for senior citizens.

E. A foreign currency loan account maintained with RBI.

Q17. Which stage of money laundering involves complex transactions to conceal the origin and ownership of illegally obtained funds:

A. Placement

B. Integration

C. Layering

D. Identification

E. Reconciliation

Q18. RBI Retail Direct primarily facilitates:

A. Direct lending by individuals to commercial banks.

B. Purchase of bank equity shares.

C. International remittances by NRIs.

D. Retail investors' access to government securities through an online platform.

E. Insurance policy issuance through bank branches.

Q19. Which statement correctly describes UPI AutoPay:

A. It permits only one-time payments.

B. It enables recurring payments through pre-authorised mandates, subject to applicable authentication and controls.

C. It is exclusively used for international settlements.

D. It debits any amount without customer authorisation.

E. It replaces NEFT.

Q20. What is the principal feature of the Cheque Truncation System (CTS):

A. Physical transportation of every cheque to the drawee bank.

B. Conversion of cheques into electronic transfers without images.

C. Cheque payments without customer signatures.

D. Clearing exclusively of foreign currency cheques.

E. Electronic transmission of cheque images and data instead of physical movement of the cheque.

SECTION II — ANSWER KEY

Q1.C

Q2.A

Q3.D

Q4.B

Q5.E

Q6.C

Q7.A

Q8.D

Q9.B

Q10.E

Q11.A

Q12.C

Q13.D

Q14.B

Q15.E

Q16.A

Q17.C

Q18.D

Q19.B

Q20.E

SECTION III — DETAILED EXPLANATIONS

Q1. CRR — Option C

CRR = NDTL × CRR rate

= ₹5,000 crore × 4% = ₹200 crore.

CRR is maintained as cash balances with RBI. The 4% rate is assumed solely for this numerical question.

Q2. SLR — Option A

Eligible SLR assets include cash, gold and unencumbered investments in approved securities, subject to RBI conditions.

CRR is maintained with RBI, whereas SLR is maintained in specified liquid assets.

Q3. Repo — Option D

Repo is a collateralised borrowing arrangement. The bank sells eligible securities to RBI and agrees to repurchase them at a specified future date and price. Repo operations inject liquidity.

Q4. TReDS — Option B

TReDS facilitates electronic financing of MSME trade receivables. Its participants include MSME sellers, corporate buyers and financiers. Financing is generally without recourse to the MSME seller.

Q5. Letter of Credit — Option E

A documentary LC is an independent undertaking. The issuing bank examines documents against the LC terms rather than physically inspecting goods. Payment is governed by presentation of complying documents.

Q6. KYC Periodicity — Option C

RBI's periodic KYC updation frequency:

High-risk customers: Every 2 years.

Medium-risk customers: Every 8 years.

Low-risk customers: Every 10 years.

Q7. CKYCR — Option A

The Central KYC Records Registry maintains centralised KYC records and provides a unique identifier. It facilitates retrieval and sharing of KYC information, subject to applicable regulatory requirements and consent.

Q8. CERSAI — Option D

CERSAI registers security interests and maintains records of secured transactions. It supports transparency in secured lending and helps prevent fraudulent multiple financing.

Q9. DICGC — Option B

Maximum insurance coverage is ₹5 lakh per depositor per insured bank, including principal and interest.

Deposits in different branches of the same bank are aggregated when held in the same right and capacity.

Q10. DICGC Coverage — Option E

Eligible insured banks include commercial banks, RRBs, Local Area Banks and eligible cooperative banks. Primary cooperative societies are not covered.

Q11. RTGS — Option A

Minimum RTGS transaction: ₹2 lakh.

RTGS provides real-time gross settlement and is available 24×7. There is no RBI-prescribed upper transaction limit.

Q12. NEFT — Option C

NEFT is available 24×7 and processes transactions in half-hourly batches. There is no RBI-prescribed minimum transaction amount.

NEFT uses deferred net settlement, whereas RTGS uses real-time gross settlement.

Q13. IFSC — Option D

IFSC has 11 characters:

First four: Bank identifier.

Fifth: Zero.

Last six: Branch identifier.

Q14. NACH — Option B

NPCI's NACH facilitates bulk and recurring transactions, including salaries, pensions, dividends, EMI collections and utility payments.

Q15. FEMA — Option E

Capital account transactions alter specified assets or liabilities in India or outside India of persons resident in India or outside India. Overseas investments are an example.

Trade payments, travel remittances and other routine payments generally fall under current account transactions.

Q16. FCNR(B) — Option A

FCNR(B) stands for Foreign Currency Non-Resident (Bank). It is a term deposit maintained by eligible non-residents in permitted foreign currencies. Principal and interest are repatriable, subject to applicable rules.

Q17. AML — Option C

The three stages of money laundering are:

Placement: Introducing illegal funds into the financial system.

Layering: Concealing their origin through complex transactions.

Integration: Reintroducing funds into the legitimate economy.

Q18. RBI Retail Direct — Option D

RBI Retail Direct provides individual retail investors access to government securities through an online platform, including eligible primary and secondary market transactions.

Q19. UPI AutoPay — Option B

UPI AutoPay enables recurring payments through pre-authorised mandates. Examples include subscriptions, insurance premiums, utility bills and eligible loan repayments.

Q20. CTS — Option E

Cheque Truncation System facilitates electronic clearing through transmission of cheque images and data instead of physical movement.

Its benefits include faster clearing, reduced transportation and improved operational efficiency.

SECTION IV — QUICK REVISION CAPSULE

1. Reserve Management

CRR: Cash reserve maintained with RBI.

SLR: Eligible liquid assets including cash, gold and approved securities.

2. Monetary Policy

Repo: Collateralised liquidity injection.

Repo and reverse repo-type operations: Important liquidity management instruments.

3. Trade Finance

TReDS: MSME receivables financing.

LC: Independent documentary undertaking.

With recourse: Seller retains contractual recourse exposure.

4. KYC and Security Registration

CKYCR: Centralised KYC records.

CERSAI: Registration of security interests.

KYC periodicity: High risk — 2 years; Medium risk — 8 years; Low risk — 10 years.

5. Deposit Insurance

DICGC coverage: ₹5 lakh per depositor per insured bank.

Primary cooperative societies: Not covered.

6. Payment Systems

RTGS: Minimum ₹2 lakh; real-time gross settlement.

NEFT: Half-hourly batch settlement; 24×7.

NACH: Bulk and recurring payments.

CTS: Electronic cheque-image clearing.

7. International Banking

IFSC: 11 characters.

FCNR(B): Foreign-currency term deposits for eligible non-residents.

8. FEMA and AML

FEMA: Foreign Exchange Management Act, 1999.

AML stages: Placement – Layering – Integration.

9. Retail and Digital Payments

RBI Retail Direct: Retail access to government securities.

UPI AutoPay: Recurring payment mandates.

SECTION V — IBR READER ENGAGEMENT

IBR PLATINUM CHALLENGE

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

PERFORMANCE EVALUATION

Score

Performance

18–20

Excellent — Strong Mains readiness

15–17

Very Good — Strong conceptual understanding

12–14

Needs Improvement

Below 12

Strengthen fundamentals and practise more

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