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

🔥 PLATINUM SERIES 2.0 | VOL. 201

📅 17 OCTOBER 2026 | SATURDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB

📝 20 QUESTIONS | 20 MARKS

⏱️ TIME LIMIT: 20 MINUTES

❌ NEGATIVE MARKING: 0.25 PER WRONG ANSWER

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📘 SECTION 1: ADVANCED MOCK TEST

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Q1. The Reserve Bank of India introduces the Unified Lending Interface (ULI) to facilitate frictionless credit delivery. Which feature best describes its intended role:

A. Replacing all banks with a single public lender

B. Guaranteeing repayment of every digital loan

C. Facilitating consent-based access to relevant digital information for faster credit assessment

D. Eliminating the need for borrower verification

E. Fixing a uniform interest rate for every borrower

Q2. Which statement correctly distinguishes a Central Bank Digital Currency (CBDC) from a bank deposit:

A. A CBDC is a liability of the central bank, whereas a commercial bank deposit is a liability of the commercial bank

B. A CBDC is necessarily a privately issued cryptocurrency

C. A CBDC is always backed by a fixed quantity of gold

D. A CBDC can be issued only by commercial banks

E. A CBDC is identical to an unsecured corporate bond

Q3. Under the Basel III Net Stable Funding Ratio (NSFR) framework, which statement is correct:

A. It measures only a bank's daily cash withdrawals

B. It is calculated by dividing net profit by total assets

C. It measures the percentage of non-performing assets

D. It compares available stable funding with required stable funding, with a general minimum requirement of 100%

E. It measures the proportion of deposits insured by DICGC

Q4. Which statement best describes the purpose of the Prompt Corrective Action (PCA) framework for banks:

A. To guarantee a minimum return to every depositor

B. To trigger supervisory corrective measures when specified financial or prudential indicators breach applicable thresholds

C. To automatically nationalise every bank reporting a loss

D. To eliminate statutory audits

E. To provide unrestricted refinancing to every weak bank

Q5. A depositor maintains multiple eligible deposit accounts in the same bank in the same right and capacity. How is DICGC deposit insurance generally calculated:

A. Separately for every branch without aggregation

B. Only on savings deposits, excluding fixed deposits

C. At ₹5 lakh for each individual account without aggregation

D. Only on the principal amount, excluding eligible interest

E. By aggregating eligible deposits across branches and accounts in the same right and capacity, subject to the ₹5 lakh insurance limit

Q6. A government security is traded by market participants through RBI's Negotiated Dealing System–Order Matching (NDS-OM). What is the principal function of this platform:

A. Maintaining the Central KYC Records Registry

B. Providing deposit insurance to investors

C. Facilitating electronic order matching in the government securities market

D. Issuing equity shares to commercial banks

E. Processing income-tax returns

Q7. An eligible MSME has accepted trade invoices but is facing a working-capital shortage. Which platform is specifically designed to facilitate financing of trade receivables through multiple financiers:

A. CKYCR

B. DICGC

C. NDS-OM

D. TReDS

E. CERSAI

Q8. Which organisation operates the Central KYC Records Registry (CKYCR) in India:

A. Securities and Exchange Board of India

B. National Housing Bank

C. National Payments Corporation of India

D. Insurance Regulatory and Development Authority of India

E. Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)

Q9. A customer authorises recurring digital payments for a subscription through a UPI mandate. Which statement best describes the arrangement:

A. It is an authorisation mechanism for eligible recurring payments, subject to applicable mandate and transaction rules

B. It converts the customer's savings account into a current account

C. It automatically guarantees payment regardless of available funds or applicable controls

D. It eliminates the need for customer consent

E. It is a form of government security

Q10. Which statement correctly distinguishes a payment gateway from a payment aggregator in the digital payments ecosystem:

A. A payment gateway is the central bank, while a payment aggregator is a commercial bank

B. A payment gateway primarily provides technology for transmitting payment information, while a payment aggregator facilitates payment acceptance and related fund-handling arrangements under applicable rules

C. A payment gateway provides deposit insurance, while a payment aggregator issues currency

D. Both are necessarily government-owned institutions

E. Neither can be subject to regulatory requirements

Q11. What is the principal purpose of the Basel III leverage ratio:

A. To measure the annual growth of a bank's deposits

B. To determine the interest rate payable on savings accounts

C. To measure the proportion of secured loans in the portfolio

D. To provide a non-risk-based backstop against excessive leverage

E. To calculate the government's fiscal deficit

Q12. Under the Liquidity Coverage Ratio (LCR) framework, the standard stress horizon for assessing a bank's short-term liquidity buffer is:

A. 7 calendar days

B. 14 calendar days

C. 30 calendar days

D. 90 calendar days

E. 365 calendar days

Q13. Which statement correctly distinguishes the Cash Reserve Ratio (CRR) from the Statutory Liquidity Ratio (SLR):

A. Both are calculated only on a bank's net profit

B. CRR consists exclusively of government securities held by a bank

C. SLR consists exclusively of cash balances maintained with RBI

D. CRR is applicable only to foreign banks

E. CRR requires prescribed cash reserves with RBI, whereas SLR requires prescribed liquid assets under the applicable framework

Q14. Under a conventional repo transaction, a bank obtains short-term funds by:

A. Borrowing against securities under an agreement involving their sale and repurchase

B. Issuing ordinary equity shares

C. Accepting an unsecured donation

D. Converting all deposits into capital

E. Writing off its outstanding borrowings

Q15. Which statement about Treasury Bills issued by the Government of India is correct:

A. They are perpetual securities carrying a fixed annual coupon

B. They are short-term government securities generally issued at a discount and redeemed at face value

C. They are issued exclusively by private companies

D. They carry a dividend linked to corporate profits

E. They are necessarily unsecured loans to commercial banks

Q16. Other things being equal, what is the usual relationship between the market yield and price of an existing fixed-rate bond:

A. Both always increase together

B. Both always decrease together

C. Bond price is independent of market yield

D. Bond prices generally move inversely to market yields

E. Bond prices always remain equal to face value

Q17. A customer has lodged a complaint against a covered regulated entity. The prescribed complaint-first requirement and applicable waiting period have been satisfied, but the grievance remains unresolved. What is the appropriate next step, subject to the applicable scheme:

A. Immediately approach an unrelated commercial bank

B. Stop maintaining all banking records

C. Consider lodging an eligible complaint under the RBI Integrated Ombudsman Scheme

D. Assume the complaint has automatically been decided in the customer's favour

E. Publish confidential account details online

Q18. Which security interest is expressly excluded from the application of the SARFAESI Act under Section 31(i):

A. Every mortgage created in favour of a bank

B. Every security interest over commercial buildings

C. Every secured loan exceeding ₹1 crore

D. Every security interest created by a company

E. A security interest created in agricultural land

Q19. An employee receives an email impersonating a senior executive and requesting urgent transfer of funds to a new beneficiary. Which control is most appropriate before executing the payment:

A. Independently verify the request through an authorised communication channel and follow dual-authorisation controls

B. Execute the transfer immediately because the sender appears senior

C. Disable transaction alerts to avoid delay

D. Share credentials with the sender

E. Bypass the bank's payment approval process

Q20. Which statement correctly describes the lending restrictions applicable to payments banks under the RBI's regulatory framework:

A. They can undertake unrestricted corporate lending

B. They can lend only to large industrial companies

C. They can issue loans without any regulatory restrictions

D. They are not permitted to undertake lending activities under the payments-bank framework

E. They can replace all commercial banks in providing credit

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🔐 SECTION 2: ANSWER KEY

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Q1. C

Q2. A

Q3. D

Q4. B

Q5. E

Q6. C

Q7. D

Q8. E

Q9. A

Q10. B

Q11. D

Q12. C

Q13. E

Q14. A

Q15. B

Q16. D

Q17. C

Q18. E

Q19. A

Q20. D

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📖 SECTION 3: QUICK EXPLANATIONS

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Q1. C — Unified Lending Interface

ULI is intended to facilitate frictionless credit by enabling secure access to relevant digital information and improving the efficiency of credit assessment. It does not replace lender appraisal.

Q2. A — CBDC versus bank deposit

A CBDC represents a liability of the issuing central bank. A commercial bank deposit represents a liability of the commercial bank.

Q3. D — NSFR

NSFR = Available Stable Funding ÷ Required Stable Funding × 100. The general minimum is 100%, subject to the applicable regulatory framework.

Q4. B — PCA

PCA provides a supervisory framework for corrective action when specified financial indicators cross applicable thresholds. It is not an automatic bank-nationalisation mechanism.

Q5. E — DICGC insurance

The insurance ceiling is ₹5 lakh per depositor per bank, including eligible principal and interest, aggregated across branches and accounts held in the same right and capacity, subject to the applicable rules.

Q6. C — NDS-OM

NDS-OM facilitates electronic order matching in the government securities market.

Q7. D — TReDS

Trade Receivables Discounting System platforms facilitate financing or discounting of eligible MSME trade receivables through financiers.

Q8. E — CERSAI

CERSAI operates CKYCR, which supports centralised storage and retrieval of KYC records under the applicable framework.

Q9. A — UPI mandate

A UPI mandate permits eligible recurring payments under specified authorisation, transaction and control requirements.

Q10. B — Gateway versus aggregator

A gateway provides payment-technology infrastructure. A payment aggregator facilitates payment acceptance and associated fund flows within the applicable regulatory framework.

Q11. D — Basel III leverage ratio

The leverage ratio is a non-risk-based measure intended to constrain excessive leverage and complement risk-weighted capital requirements.

Q12. C — 30 days

LCR assesses whether a bank has sufficient eligible high-quality liquid assets to cover prescribed net cash outflows over a 30-calendar-day stress period.

Q13. E — CRR versus SLR

CRR relates to prescribed cash reserves maintained with RBI. SLR relates to prescribed liquid assets maintained under applicable RBI directions.

Q14. A — Repo

A repo is a collateralised funding transaction structured as a sale and repurchase of securities.

Q15. B — Treasury Bills

Government of India Treasury Bills are short-term securities generally issued at a discount and redeemed at face value. They do not pay a conventional periodic coupon.

Q16. D — Bond prices and yields

For an existing fixed-rate bond, a rise in market yields generally reduces its price, while a fall in market yields generally increases its price.

Q17. C — RBI Integrated Ombudsman Scheme

An eligible customer may approach the RBI Ombudsman after satisfying the applicable complaint-first requirement, waiting period and other scheme conditions and exclusions.

Q18. E — Agricultural land

Section 31(i) of the SARFAESI Act excludes security interests created in agricultural land from the Act's application.

Q19. A — Independent verification

Independent callback verification, maker-checker controls and authorised approval channels help reduce social-engineering and payment-fraud risks.

Q20. D — Payments banks

Payments banks operate under a restricted banking model and are not permitted to undertake lending activities under the RBI payments-bank framework.

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⚠️ SECTION 4: HIGH-VALUE EXAM TRAPS

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🔹 ULI facilitates credit delivery; it does not guarantee loan repayment.

🔹 CBDC is a central bank liability, not a private cryptocurrency.

🔹 NSFR concerns structural funding stability; LCR concerns short-term liquidity resilience.

🔹 PCA is a supervisory corrective framework, not automatic nationalisation.

🔹 DICGC's ₹5 lakh ceiling applies per depositor per bank in the same right and capacity.

🔹 NDS-OM is associated with government securities trading.

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📊 SECTION 5: CHECK YOUR SCORE

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✅ Correct answer: +1 mark

❌ Wrong answer: −0.25 mark

➖ Unattempted: 0 marks

Score = Correct answers − (0.25 × wrong answers)

🏆 18–20: Excellent

🌟 16–17.75: Strong performance

📘 13–15.75: Revise weak areas

🛠️ 10–12.75: Strengthen fundamentals

🔄 Below 10: Revisit core concepts

These are IBR practice benchmarks, not official IBPS cut-offs.

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🚀 SECTION 6: YOUR ACTION ZONE

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✅ Attempt all 20 questions within 20 minutes.

🧮 Calculate your score honestly.

🔍 Identify conceptual errors and confusing options.

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📚 SECTION 7: JOIN IBR PREMIUM

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🔥 SIX EXAM-PREPARATION PROGRAMMES

1. IBPS PRELIMS

• Reasoning • Quantitative Aptitude • English

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5. JAIIB

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• Advanced Banking • Risk Management • Professional Knowledge

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📺 SECTION 8: JOIN IBR ON YOUTUBE

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